$4.1 Million Townhome Construction Loan
Deal highlights: Sponsors bough the land in 2019 and obtained a development permit to build 16 modern, 3-bedroom townhomes to be sold at $450,000 each. Homes are very desirable for the area, and sponsor achieved success with very similar project 1 mile away (same General Contractor as well). Developers brought 26% of equity to the table and construction is protected by a Completion Guarantee. Borrowers exhibited healthy liquidity, net worth and are personal guarantors on the loan.
Location: Atlanta, Georgia
Loan Amount: $4.1MM
Loan Type: Ground-Up Construction Loan
Appraised Value: $7.1MM (Cushman & Wakefield)
Interest Rate: 9% + 3.5% origination + exit
Term: 12 months + 6 month extension
LTV: 64%
LTC: 74%
Guarantees: 1st Lien on Property, Personal Guarantee, Completion Guarantee