Miami Lenders for CRE Value Add Projects
Are you seeking financing for a commercial property value-add project in Miami? On this page, you’ll find a list of private lending firms that offer short-term loans to purchase & renovate (or re-purpose) commercial real estate throughout Miami’s urban areas, including retail, office, industrial, hotels, self-storage, and others. The sponsor/borrower must contribute at least 20% cash to the total project costs (acquisition and rehab budget). The loan-to-completed value for most lenders is 70%, or whatever LTV will qualify for the long-term takeout loan.Searching...
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Funded Multifamily and CRE Value-Add Loans in Miami
Purchase & Rehab Loan for Multifamily Property in Miami Beach, Florida
$2,130,000
Conventus LLC, a direct private mortgage lender, funded a $2,130,000 1st lien position purchase and rehab loan for the acquisition of a 16-unit multifamily property in Miami Beach, FL. We funded 100% of the $240,000 renovation budget and 60% of the $3,100,000 purchase price, while the Borrower contributed 40% cash to the purchase at closing. The as-is valuation came in at $3,170,000 and the As-complete value was $3,640,000. Our loan-to-after-repair value was 59%. The investment plan is to give existing tenants a 60-day notice to vacate, lightly rehab the units, and upgrade the exterior. The units will be vacated in stages as they prefer to keep the property cash flowing during renovations. The subject property was in fair condition. It was approximately 7,226 square feet. The Borrower had good credit. They plan to sell the property upon completion of the rehab. The interest rate was 9% and we charged a 1% origination point. The loan term was set at 18 months with a 9-month prepay, interest only. This multifamily rehab loan was funded in April 2023.
Bridge Loan for Miami Beach Motel to Multifamily Conversion
$3,000,000
Stormfield Capital, a direct CRE bridge lender, funded a $3M loan for the purchase and renovation of an 18-unit motel in North Miami Beach, FL. The Borrower/Sponsor is an active developer in Miami and New York City. They are converting the motel into an 18-unit multifamily property. The purchase price was $3,000,000 and the rehab budget was $600,000. The Sponsor contributed 20% cash toward the purchase. Stormfield funded the rest of the acquisition cost and the entire rehab budget on a rolling basis. We estimated the completed value to be around $4,615,000 which will make our financing 65% loan-to-completed value. We did our own in-house valuation and did not require a formal appraisal. Upon completion of the project, the Sponsor plans to refinance our loan with permanent financing and hold the property for a long-term investment. This commercial property value-add project was funded in October 2021.