Ground-Up Construction Loan for Luxury Home in East Hampton, New York

Ontario Wealth Management Corporation, a direct private real estate lender, funded a $6,200,000 1st lien position ground-up construction loan for a luxury single-family residence in East Hampton, NY. The property value was estimated at $24,000,000 so our loan-to-value was 30%. The ground-up development is a 2-story, 6,500-square-foot residence consisting of 7 bedrooms and eight bathrooms. The house will be built with high-end improvements offering extensive amenities such as a spa, gym, sauna, theater, wine room, bar/lounge, and an 800-square-foot pool (38×18) with a 600-square-foot three-car garage.

The Borrower/Developer pledged additional collateral to secure the loan: a 2.1-acre vacant lot with an irregular shape, which will be developed with a luxury 2-story, 10-bedroom, and 11-bathroom spread over the 8,840-square-foot house above grade with a three-car garage. The land is secluded, offering privacy and tranquility in the East Hamptons – a renowned summer seaside destination in New York. One of two parcels is situated south of the Montauk Highway where homes sell at a premium owing to their proximity to the Atlantic shoreline. The Borrower plans to sell the property upon completion of the construction. The loan term was set at 14 months. This SFR ground-up construction loan was funded in March 2023.