Calgary 12-Unit Multi-Family Bridge Loan Rescue

Written By Jey Arul

The Challenge: The DSCR Trap A commercial investor had an accepted offer on a 12-unit apartment building in Calgary. The building was poorly managed, heavily distressed, and sitting at 50% vacancy.

Just 14 days before the closing date, their institutional lender pulled out. The bank claimed the current Debt Service Coverage Ratio (DSCR) was too low to support the loan. The bank was hyper-focused on the past failures of the property, rather than the future potential, leaving the buyer’s $50,000 non-refundable deposit on the line.

The AJS Solution: Pro-Forma Vision AJS Capital understands value-add stabilization. We didn't look at the current failing rent roll; we looked at the investor's pro-forma. The buyer had a clear, realistic, and costed plan to renovate the vacant units and bring the rents up to current market rates. We provided a 12-month, interest-only commercial bridge loan capped at 75% LTV of the "As-Is" value to bridge the gap.

The Result: Deposit Saved, Asset Secured

  • Time to Fund: 10 Days

  • Loan Structure: 12-Month Interest-Only Commercial Bridge

  • Outcome: We funded the acquisition fast enough to save the investor's deposit. The 12-month term gave the borrower exactly enough time to execute their renovations, place high-quality tenants, stabilize the NOI, and secure long-term CMHC financing to pay us out.

Need a bridge to stabilize your next multi-family acquisition? Submit your deal today for a 24-hour quote.

Jey Arul

Most people who advise on buying and selling businesses have never actually done it themselves.

I have — on both sides of the table.

Over the past 20+ years, I’ve worked as a Commercial Banker, Investment Banker, and M&A Advisor, and I’ve personally advised on and closed 90+ small and mid-sized business sales and acquisitions across Alberta.

I’ve structured deals.

I’ve sourced capital.

I’ve negotiated with buyers, sellers, lenders, and investors.

And yes — I’ve also built, bought and sold my own businesses.

That last part changes how you see everything.

It means I don’t just understand deals academically or from a fee-based advisory lens. I understand:

- The emotional side of letting go

- The fear of “Did I time this right?”

- The risk of picking the wrong buyer

- And the very real difference between a paper valuation and a closed transaction

My career has lived at the intersection of:

- Commercial banking & credit structuring

- Private lending & capital stacks

- M&A and business sales

- Owner-operated, main street and lower mid-market businesses

I’ve helped owners:

- Raise growth capital

- Buy competitors

- Refinance and de-risk

- And exit businesses they spent decades building

Today, through AJS Capital, I work with business owners who are thinking about selling, partnering, or buying — and with advisors and brokers who want to level up into real commercial and M&A work, not just talk about it.

I’m originally from Singapore and have been based in Edmonton for over 30 years. I bring a global perspective with very local, very practical execution.

If you’re a business owner thinking about an exit, a buyer looking for the right deal, or a broker who wants to step into serious commercial and M&A transactions — let’s connect.

No hype. No fluff. Just real deals, done properly.

https://www.ajscapital.com
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