Closed · July 2026 · Main Street, Northampton, PA

12-Unit Converted Schoolhouse on Main Street, Northampton: $1,800,000 Fixed-Rate Refinance After a Value-Add Plan

Repeat GSM clients bought a 12-unit converted schoolhouse on Main Street in Northampton in February 2024 for $2,300,000. After raising gross rent 15% and net operating income 14%, they refinanced into a $1,800,000 fixed-rate, fully amortizing bank/credit union loan and took cash out.

Two-story red-brick former schoolhouse with two arched entrances, now apartments — Converted schoolhouse apartments, Main Street, Northampton.

How the financing was structured

The owners, repeat GSM clients, bought this converted schoolhouse apartment building in February 2024 for $2,300,000, with acquisition financing GSM arranged.

Over the next two and a half years they raised rents as units turned over and added utility billback. Gross rent rose 15% and net operating income rose 14%, and by mid-2026, with the owners executing their business plan, the property appraised well above the purchase price.

GSM then refinanced the acquisition loan into a $1,800,000 fixed-rate, fully amortizing term loan from a local bank/credit union, at 1.25x debt coverage on the improved income. The new loan paid off the existing loan and returned part of the owners' equity as cash out. It closed in July 2026.

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