Why we like this deal?
The borrower is acquiring multifamily land in a major metropolitan area to construct a Class A apartment development. This land consists of two different sites located about a block from each other. Site 1 consists of 1.73 acres, and Site 2 consists of 0.70 acres for a total of 2.43 acres. The land is zoned DI?TC which allows for multifamily use. Both sites are entitled with conceptual drawings/blueprints that were drawn for condos but will be turned into apartments. Site 1 has conceptual drawings that can be brought to full approval within 5 months. Site 2 has full blueprints that obtained final design review and that need to be updated to present zoning requirements. The geographic area was awarded the Nations Top Suburban Smart Growth Community by the Best in American Living Awards (BALA). It was also ranked a ?Top 100 Golf Community? by Travel & Leisure Golf magazine. The projected rental income from the properties is $2,600,000. The borrower will exit the loan by either refinancing through a permanent loan or selling the development after it is stabilized.
The borrower is a corporation formed in 1988 to acquire and remodel multifamily units, specializing in apartments. Its principal place of business is Bridgeport, CT. The Principal shareholder has a very high net worth and a credit score in the mid 600s. The proposed architect was named Design Firm of the Year in 2014 by ENR Southeast and it has designed many upscale, multifamily complexes throughout the Carolinas and Georgia. The proposed builder has built over 10 million square feet of multifamily projects with a total value close to $1 billion.
The loan to value (LTV) provides a 44.7% cushion of equity.
This opportunity presents an investor with a commercial note at 6% for 2 years, secured by a recorded first mortgage lien or deed of trust on this property.
Why the bank can’t lend
|Loan Term:||2 years|
|Source of Income:||real estate|