Deal Details
Private Loan Type
Purchase
Approx. Funding Date
05/29/2020
Property Type
Property City
Hawthorne
Property State
CA
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$2,000,000
Loan-to-Purchase Price
63%
Borrower's Contribution to Purchase
37%
Source of Borrower's Contribution
Cash
Number of Units
8
Exit Strategy
Refinance
Interest Rate
8.25%
Deal Summary
Archway Fund, a direct private lender based in LA, provided a $1,350,000 non-recourse private loan for the purchase of two adjacent multifamily properties in Hawthorne, California. The Borrowers needed quick financing to close on this property during the COVID-19 pandemic shutdown. The purchase price was around $2,000,000. Archway’s 1st mortgage is 63% LTC (loan-to-cost). The Borrowers contributed 37% cash at closing. They plan to execute a tenant buyout of the 8 units and then renovate the property to increase its value. Once the renovation is completed and new tenants are moved in, the loan can be refinanced with long-term permanent financing. The loan term was 12 months. The interest rate was fixed at 8.25%. This private mortgage was funded in May 2020.