Funding Purpose
Tauro Capital Advisors was engaged on an exclusive basis to place a bridge loan for the cash-out refinance of 93 ready-to-build SFR lots.
Property Description
The lots are located in the Southwestern U.S. and are a fraction of the 201 SFR lots to be built. The lots are 20 minutes from a major airport and come with nearby amenities.
Sponsors
The sponsor is an experienced SFR developer. He acquired the development from a prior client, and intends to use proceeds from the loan to purchase and develop adjacent land parcels.
Challenges
- Want to structure the deal in a way that will make it look attractive to lenders.
Solutions
- Funding secured with a life company that helped plan the capital stack and funded at the desired terms.
Funding
- Loan Amount (LTV): 50%
- Interest Rate: 8.99% Fixed
- Term: 2 Years
- Recourse: Carve-Out
- Interest Only: 2 Years
- Prepayment: No Penalty
