)
Deal Details
Private Loan Type
Commercial Ground-Up Construction
Approx. Funding Date
11/22/2022
Property Type
Property City
Pasco
Property State
WA
Loan Term (months)
24
Lien Type
1st Mortgage
Payment Type
Interest Only
Construction Budget
$2,010,227
Construction Budget Funded
80%
Builder's Contribution to Budget
20%
Completed Value
$3,220,000
Loan-to-Completed Value
71%
Construction Project Scope
Horizontal and Vertical
Location Type
Urban
Property Condition
Vacant Land
Number of Units
2
Building Square Footage
10,880
Lot Square Footage
29,781
Lot Acreage
0.68
Borrower's Plan
Continue Rental
Exit Strategy
Refinance
Borrower Credit Rating
Excellent
Interest Rate
11.99%
Origination Points
3%
Broker Commission
$23,000
Deal Summary
Precision Capital, a direct private lender, funded a $2,300,000 construction loan for a commercial building in Pasco, WA. The construction budget was $2,010,227 and we funded 80% of the construction budget in 1st lien position, while the Borrower contributed 20% cash. The completed value was $3,220,000 so our loan-to-completed value was 71%. The interest rate was 11.99% and the loan term was set at 24 months. We charged 3% origination points, and the broker earned a $23,000 commission. The Borrower was an experienced contractor with excellent credit. He purchased the land on his own. He plans to occupy 65% at completion with a sports training facility, and the other side will be a restaurant/brewpub which will be leased. The subject property has an approximate square footage of 10,880 set in a 29,781-square-foot lot. The project will be completed in late summer 2023. This property is in a perfect location, sitting on one of the main roadways in Pasco. The Borrower plans to eventually refinance as an exit strategy. This CRE ground-up construction loan was funded in November 2022.
Funded By
Precision Capital
We Are In The Business of "YES"