Funding Purpose
Mid construction Refinance. The borrower had a bridge loan on the property and needed additional funds to finish the project. They were about 60% complete with construction and we were able to refi their current loan and provide them the remaining construction dollars needed to complete the project.
Property Description
36 residential units over 4 retail units in Long Beach. This was/is a for sale project.
Sponsors
A foreign investor/developer that had used EB5 equity to start the construction. Had three projects ongoing in California and two in Hawaii.
Challenges
- Having to do a cost review mid construction posed to be problematic, but the lender handled it with ease
- Having EB5 equity made the structure a bit more difficult
Solutions
- Finding a lender who was family with this area, construction loans, and EB5 equity
Funding
- Loan Amount (LTV) $12 million
- Interest Rate 8.75%
- Term – 24 Months
- Recourse – Recourse
- Interest Only – 24 Months of interest only
