Deal Details
Private Loan Type
Refinance
Approx. Funding Date
10/30/2020
Property Type
Property City
Los Angeles
Property State
CA
Lien Type
1st and 2nd
Payment Type
Interest Only
Property Value
$8,775,000
Loan-to-Value
49%
Occupancy at Closing
Partially Occupied
Number of Units
8
Deal Summary
In October 2020, Newport Commercial Capital provided a bridge loan in the amount of $4,300,000 secured by a retail property in Los Angeles. The property had two mortgages and was in default with one of the previous lenders. A new partner joined the ownership group and used his own cash to pay off the 2nd mortgage. He then turned to NCC to refinance the 1st mortgage and save the property from foreclosure. We ordered an appraisal, and the value came it at around $8,775,000. So our loan-to-value was only 49%. The property consists of 8 retail units. 6 were occupied and the other 2 were undergoing tenant improvements but had leases in place. The property also consists of an adjacent vacant lot, and the owners plan to build a 40,000 square foot storage facility. Some of the proceeds from our bridge loan were to be used for the soft costs, and we may end up providing the construction loan next year.