Case Study18-Unit Condo Construction Financing
Loan Amount: $2,250,000
Loan-To-Value: 80% Loan-To-Cost (Project)
Situation & Challenge
A Portland builder needed to be at 80% Loan-To-Cost (LTC) in order to acquire the property and build an 18-unit condo building in close-in North Portland. In addition to the financing, the builder requested an interest reserve to cover payments through the buildout was complete, expected to be in the summer of 2019.
The leverage at 80% LTC and 18-month interest reserve was steeper than or funds prefer to be at. But, it’s something that First Capital Trust Deeds could work with.
Solution & Result
First Capital Trust Deeds secured financing for the borrower at 80% LTC with the 18-month interest reserve with an interest rate in the single digits, which, for Portland, was very good pricing.
Construction was ongoing and was expected to completed by July 2019, which, then will see 18 new condos going on the market.