$4.8 Million Ground Up Townhome Construction Loan

Deal Highlights: Sponsor with extensive track record for this type of project acquired the land in Raleigh, NC in 2019 to build 20 townhomes and sell in the mid-to-high $400s. Developer brought 24% equity, provided a Completion Guarantee (Lloyd’s of London as counterparty) and personal guarantees as well.

Location: Raleigh, NC

Loan Amount: $4.8MM

Loan Type: Ground Up Townhome Construction Loan

Appraised Value: $7.4MM (Jones Lang Lasalle)

Interest: 10.5% +2.5% origination + exit

Term: 12 months + 6 month extension

LTV: 64%

LTC: 76%

Guarantees: 1st Lien on Property, Personal Guarantee, Completion Guarantee.