Funding Purpose
This loan was to refinance a seller carry loan that was coming due at the end of February. When we started going out to lenders, the property was 100% vacant
Property Description
Property was purchased at the beginning of 2020 and fully remodeled. Sponsor finished the remodel in October and started lease up process
Sponsors
Experienced developer who has turned over 10 similar models over his career. His tenant focus is in the entertainment industry, Music, photography, videography, etc.
Challenges
- Multi-tenant Flex Rent Collection issues
- Property was fully vacant when we started
- Loan maturity – Tight timeframe
Solutions
- Identified a bank who believes in these tenants
- Worked hand in hand with the sponsor to make sure the building was leased up by the time the loan funded
- Lender was able to rush 3rd parties and loan docs to meet our deadline
Funding
- Loan Amount (LTV): 60%
- Interest Rate: 3.65%
- Amortization: 25 Y
- Term: 5 Y
- Recourse: Yes
- Prepayment: 6 Months of Interest
