Hard Money Refinance Loan for Mixed-Use Property in Brooklyn, New York

Gelt Financial, a direct CRE private lender, funded a $450,000 1st lien position hard money refinance loan secured by a 3-unit mixed-use property in Brooklyn, New York. The property value was estimated at $900,000 so our loan-to-value was 50%. Located in the Flatbush neighborhood of Brooklyn, the property contained 2 residential units and 1 commercial unit. The owner recently renovated one of the residential units. They approached Gelt Financial because their previous mortgage was ballooning and the lender wasn’t interested in refinancing. The subject property was partially occupied at closing and contained one 3-bed unit, one 2-bed unit, and 1 commercial unit. It was owner-managed with annual leases in place with long-term tenants. The subject property was built in 1925 and was in good condition. It was approximately 5,000 square feet. The Borrower had good credit. They plan to lease up the vacant units and eventually refinance as an exit strategy. The interest rate was 13% floating, and we charged 3% origination points. The loan term was set at 12 months. This hard money loan was funded in March 2023.