First Capital Trust Deeds secured a $3,000,000 bridge to stabilization loan for new construction located on the waterfront in Naples, Florida. The project consists of five newly constructed 2,900 square foot high-end waterfront single family homes situated on a 37,200 square foot lot located in the high-end Royal Harbor neighborhood of Naples, Florida.
The challenge was that the project was 90% complete when the client needed a low leveraged bridge to stabilization loan to complete the remaining finishes on the last three houses, as well provide additional time to strategically sell the units within a new loan term since the original construction loan was due in the coming month.
In about 13 business days, First Capital Trust Deeds was able to partner with an institutional investor who was familiar with the local Royal Harbor market and absorption rates on the high-end waterfront single-family properties. The financing provided will give the client additional capital to finish the project as well as provide more time to sell all of the units within the loan term. FCTD was also able to structure specific credit enhancements and acceptable release pricing with the investor to properly mitigate credit risk within the investor’s institutional credit guidelines.