Santa Barbara, CA
SDC Capital provided a mezzanine 2nd mortgage for the acquisition of a 28-unit multifamily property near Downtown Santa Barbara, California. The Borrowers had plans for a major renovation, and needed additional funds to close. They had already secured senior financing from a bank at a lower interest rate and brought a 36% down payment in cash. The combined loan-to-purchase with our $800,000 2nd mortgage was 66%. The Borrowers also funded all of the renovation costs with their own money, so our loan did not include any holdbacks. We priced this 2nd lien loan aggressively at 9.00% and 1.5 points, with a loan term of 24 months. We did not require an appraisal. This mezzanine loan was funded in July 2019.