Private Construction Loan for Assisted Living Facility in Brooklyn, New York

Deal Details

Private Loan Type

Residential Ground-Up Construction

Approx. Funding Date


Property Type
Assisted Living Facility
Property City


Property State


Loan Term (months)


Lien Type

1st Mortgage

Payment Type

Interest Only

Property Neighborhood

Mill Basin

Location Type


Property Condition

Brand New Build

Number of Units


Building Square Footage


Borrower's Plan


Exit Strategy

Conventional Loan

Deal Highlights

Funded in 4 weeks.
$5M advanced at closing.
High net worth NYC developer.
6-Story, 50-unit building.

Deal Summary

Ontario Wealth Management Corporation, a direct private real estate lender, funded a $12,000,000 1st lien position ground-up construction loan for a 66,000-square-foot, 190-bed assisted living facility in the Mill Basin neighborhood of Brooklyn, New York. Prior to closing, the property was free and clear of any financing with the Sponsor having injected roughly $20MM in cash equity to date. The highly structured transaction includes a modest minimum interest requirement of $750,000 and is open for pre-payment thereafter based on a 30-day prior notice. The 24-month term also includes two, six-month extension options. Notwithstanding a number of title issues including several zoning and access challenges due to the historic use of the subject and surrounding lots, Owemanco was able to complete the transaction within 4 weeks of a signed application! We advanced the first $5,000,000 at closing.

Mill Basin is an upper-class neighborhood with an aging population, which is expected to support the planned development. The property sits at the end of a quiet street and backs onto Jamaica Bay. The 6-story edifice will include a gymnasium, salon, movie theater, and upscale dining hall for residents. The building is currently enclosed, with roughed-in plumbing, electric, and partially drywalled. The end product is planned to be delivered in 18 months. Upon completion, the property will be leased to a third-party assisted living facility operator. The exit strategy for our loan is to refinance with a conventional lender. The Sponsor is a New York-based, high-net-worth developer with a large real estate portfolio and several ongoing projects throughout the boroughs. He also has a successful construction and scaffolding firm and is acting as the general contractor of the project. This CRE private construction loan was funded in July 2023.

Funded By

Ontario Wealth Management Corporation

Direct Lender for Commercial Real Estate Bridge Loans