Single Family Residential – Construction

Eagle Rock, CA

$16,880,000

Funding Purpose

Tauro Capital Advisors was engaged on an exclusive basis to place debt for the construction of 14 modular SFR homes in Eagle Rock, CA.

Property Description

The hillside lots are on one of the last undeveloped tracts in the neighborhood. The neighborhood is near major LA hotspots. 10 – 14k SF lots with great views.

Sponsors

The sponsors are experienced owners and developers who have formed a partnership and done several other similar projects in nearby areas.

Challenges

  • The sponsor was looking for max leverage and had limited equity.
  • Modular structures being manufactured off-site, collaterization was problematic.

Solutions

  • Funding secured with a debt fund that specializes in construction loans.
  • Combined, they saw that the sponsors have enough experience to bring this to fruition.

Funding

  • Loan Amount (LTC): $16,880,000 (85%)
  • Interest Rate: 7.99%
  • Term: 1.5 years
  • Recourse: Payment guarantee
  • Interest Only: 18 months
  • Prepayment: No penalty

Director  | Capital Advisor

310-966-0025

fpaparella@taurocapitaladvisors.com

Managing Director  | Capital Advisor

714-401-7667

mbucaro@taurocapitaladvisors.com

Senior Director  | Capital Advisor

310-426-8080

ajohnston@taurocapitaladvisors.com

Director  | Capital Advisor

617-953-6394

ayoushaei@taurocapitaladvisors.com