Private Money Loan for Multifamily Acquisition in Hawthorne, California

Funded by Archway Capital

$1,350,000

Deal Details

Private Loan Type

Purchase

Approx. Funding Date

05/29/2020

Property Type
Multifamily
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 Highlights

Borrowers needed quick financing to close on property during the COVID-19 pandemic shutdown.

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.

Funded By

Archway Capital

National Non-Recourse Bridge Loan & Equity Provider