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

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.