23 May South Florida Real Estate Investor Uses Seven-Figure WAC Loan for Working Capital and Debt Restructure
May 22, 2023: Worth Avenue Capital, LLC is pleased to announce that it just successfully closed a $4,200,000 commercial loan to a South Florida based real estate investor. The loan proceeds were used both to restructure debt as well as to provide additional working capital for construction purposes. The loan is secured by a first mortgage on a high end condominium unit in West Palm Beach, Florida that encompasses three floors in the building. The “as is” appraisal on the aforementioned unit came in at $8,700,000 with an underlying LTV of 48%.
As the migration to Florida continues at a record pace, West Palm Beach, as well as many other communities in South Florida, has experienced tremendous growth that has resulted in an explosion of real estate prices that have increased exponentially over the last three plus years. Specifically, West Palm Beach has become one of the wealthiest cities per capita in the US as the “ultra” wealthy from other parts of the U.S. as well as abroad are moving into this city as developers continue to build brand new high rise condominium complexes on “spec”. These complexes are situated along the S.Flagler corridor that stretch along the intercoastal waterway. The units under construction in these “condo” complexes sell out very quickly to wealthy buyers who either want to permanently relocate to West Palm Beach or are seeking a second home that they can inhabit on a seasonal basis. This aforementioned phenomenon has occurred despite the “draconian” increases in interest rates during the last fourteen months.
WAC’s borrower has a successful track record in purchasing and renovating properties both on Palm Beach Island as well as West Palm Beach. The borrower expects to complete the renovation of the above reference unit sometime next fall and will then list the property for sale to monetize his investment. WAC’s short term bridge loan will be paid off in full upon the sale of the unit.
Worth Avenue Capital specializes in arranging debt financing for both small businesses and real estate developers/investors and also handles bank workouts for those same clients. You can learn more about WAC by taking a look at the [website] http://www.weclosecommercialloans.com) and Youtube videos or by contacting WAC’s principal, Michael M. Ciaburri at worthavenuecapital@gmail.com or (203) 605-4082. WAC maintains offices in both Guilford and Greenwich, Connecticut as well as Palm Beach, Florida. Be sure to follow @worthavecapital on Twitter for the latest lending news.