Hawthorne, CA

$1,350,000

Multifamily

Purchase

05/29/2020
Transaction by
Archway Fund
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 put down a significant amount in cash. They plan to execute a tenant buyout of the 8 units and then renovate the property to increase the 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. Interest rate was 8.25% Interest Only fixed. This private mortgage was funded in May 2020.