Refinance the borrower permanent loan and provide cash out to provide equity into another development project he was working on.
The subject property is the Holiday Inn Hotel, a 142 room hotel located in El Monte, California. The 4-story improvements were constructed in 2017. The property is situated between the El Monte and Rosemead neighborhoods, approximately 13 miles northeast.
A foreign investor/developer that had used EB5 equity to start the construction. Had three projects ongoing in California and two in Hawaii.
- Hotel was not operating at its full capacity as the sponsor had just completed construction
- Tauro was able to give client max proceeds based on projections and baking in an interest reserve
- Loan Amount (LTV): $20,000,000 (55% LTV)
- Interest Rate: 7.75%
- Term: 24 Months