Recent Transactions Spotlight
Today’s lending environment poses unique challenges for owners, investors, and brokers alike. Our team navigates these obstacles to provide creative and intelligent financing solutions. Here’s a sample of some recent “outside the box” loans we’ve been able to deliver.
Syndicated Acquisition Loan in Los Angeles, CA
CHALLENGE: NNN Single Tenant Retail acquisition with a shortened escrow due to a delayed 1031 Exchange.
SOLUTION: Step-rate bridge loan with 12 months of interest only payments. Cent Banc originated, underwrote and funded the loan in 32 calendar days.
Broken Construction Loan in Hollywood, CA
CHALLENGE: Dead project. Non-owner spec that went over budget and ran out of funds. Project was roughly 60% complete and no work had transpired in the past 120 days. Very large first TD and a smaller maxed out LOC along with numerous mechanic liens.
SOLUTION: Bridge loan, no roll over. 65% future value with no loan to cost calculations. Negotiated reduced payments with subs in exchange for releases. Title Company accepted a bond and insured the loan. Current second was replaced with larger LOC from our syndication and mandating the use of a construction fund manager.
Condominium Complex Construction in Downtown LA
CHALLENGE: $28M ground up multifamily construction in downtown LA. 65% loan to value and 80% loan to cost. Sponsors are professional with limited development experience. Loan to cost are aggressive and sponsors had minor equity investments.
SOLUTION: Created a development board that was hired to oversee the project. A top construction fund manager was mandated. Sponsors were required to invest additional capital. Costs were substantially reduced by adjusting the budget whereby reducing marketing rents and vacancy issues. Developer profits were unchanged.
Foreign Investor in US Property
CHALLENGE: Expat US investor living overseas with no credit history for the prior 10 years. Off shore business accounts in Cambodia and Hong Kong used as source of funds. $2.2M fixer with a $1.5M loan investment property in Beverly Hills and vested in the business entity.
SOLUTION: Strong borrower. Funds transferred to a US bank prior to escrow receipt. Fund set up automatic payments for 5 years pre-funded by borrower. 5/1 ARM at 6.5%. Full recourse.
Investor Rehab in Park City, UT
CHALLENGE: Distressed Property sale investor rehab. Property in sub-standard condition with substantial water intrusion due to sub-freezing conditions and no HVAC. No kitchen and construction takeover at 75% completion, minus water damage and mold remediation issues.
SOLUTION: Funded 70% of purchase price, strong borrower financials plus a $350K mezzanine debt and equity piece, utilizing a construction fund manager.
Regional Retail Center in Colorado
CHALLENGE: Class A Retail Center with a majority of national credit tenants with long term leases. $21,000,000 refinance with 17 months of yield maintenance remaining on the current loan. 58% LTV with a DSCR of 1.25.
SOLUTION: Negotiated a reduced prepay, building that fee into the loan amount. The rate differential break even analysis is month seven. 10 year fixed 30 year amortized, 1.50% over the 10 year T. Bill via CMBS. Non recourse.