$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.
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