27 Feb WAC Closes a Seven Figure Construction Loan on Commercial Real Estate
February 27, 2019: Worth Avenue Capital, LLC is pleased to announce that it just successfully closed a $3,500,000 Line of Credit to a CRE development group. The purpose of the loan is to provide construction financing on a bridge basis to enable the borrower to continue the construction and development of a CRE project with Class A tenants on a sixteen acre parcel of land in Fairfield County, CT. One of the members of this CRE development group is a repeat borrower of WAC.
The borrower recently purchased this parcel of land with the assistance of conventional bank financing and has obtained the necessary approvals from the municipality to construct a multi-tenant commercial development that includes CVS, Chick-Fil-A, T-Mobile, Panera Bread, Mission Barbecue, Cafe Nero, Texas Roadhouse, and several others. The developer is also “spinning off” a small portion of the land and has that piece under contract for sale to a Marriott franchisee who will construct a new Marriott hotel on that particular site.
The loan is secured by a second mortgage on the sixteen acre parcel with an underlying LTV of approximately 46%. Upon the sale of the piece to the Marriott franchisee, the LTV on this loan will be reduced to approximately 30%. The loan was funded by WAC as part of a syndication through a cadre of WAC’s private investors.
The borrower is in the process of finalizing permanent construction financing on this project from a commercial bank and will pay off WAC’s loan in full within six months or so upon closing on the conventional bank financing.