Funding Purpose
Tauro Capital Advisors, Inc. was engaged on an exclusive basis to place a loan for the acquisition and development of an entertainment district in the southern US.
Property Description
The asset consist of 5.57 acres of contiguous land spread across 14 parcels. The project will take place in phases with 5 fully-owned properties to be built in the first.
Sponsors
The Sponsor is a real estate investment and land development company. They own several properties in this submarket. Sponsor financials are strong.
Challenges
- This was a bundle of 3 refinances and 1 acquisition that needed to close within 2 weeks.
- All SFR conversions with little to no income.
Solutions
- Structured a portfolio loan with a trusted bridge lender utilizing the imputed land value from the properties owned, so no cash needed to close.
- Closed within 10 days of engagement.
Funding
- Loan to Cost: 100%
- Interest Rate: 13.75%
- Amortization: Interest-Only
- Term: 12 Mos (12 mo extension option)
- Prepayment: No Penalty
- Lender Fee: 1.5 Pts.
- Close Date: 8/22/2023
