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Deal Details
Private Loan Type
Commercial Ground-Up Construction
Approx. Funding Date
09/25/2018
Property Type
Property City
Salem
Property State
OR
Loan Term (months)
24
Lien Type
1st Mortgage
Payment Type
Interest Only
Construction Budget
$1,388,144
Construction Budget Funded
100%
Builder's Contribution to Budget
0%
Completed Value
$2,000,000
Loan-to-Completed Value
69%
Construction Project Scope
Horizontal and Vertical
Location Type
Urban
Property Condition
Brand New Build
Occupancy at Closing
Tenant-Occupied
Number of Units
3
Building Square Footage
6,000
Lot Square Footage
42,689
Borrower's Plan
Continue Occupancy
Exit Strategy
Refinance
Borrower Credit Rating
Good
Interest Rate
12.99%
Origination Points
3%
Broker Commission
$13,881
Deal Summary
Precision Capital, a direct private lender, funded a $1,388,000 construction loan for a 3-unit retail building in Salem, OR. The construction budget was $1,388,144 and we funded 100% of the budget in 1st lien position. The Borrower only contributed their equity in the land. The completed value was $2,000,000 so our loan-to-completed value was 69%. The Borrowers were experienced with running convenient stores. They purchased the land and completed their first ground-up construction project! There were 3 separate units inside the building; a convenience store, a donut shop, and a bar. Owners will occupy 2 units and lease out the 3rd unit. The subject property has an approximate square footage of 6,000 set in a 42,689-square-foot lot. The Borrower had good credit. They plan to refinance into permanent financing once the new building is fully occupied. The interest rate was 12.99% and the loan term was set at 24 months. We charged 3% origination points, and the broker earned a $13,881 commission. This CRE ground-up construction loan was funded in September 2018.
Funded By
Precision Capital
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