Ground-Up Construction Loan for Multifamily Property in the Bronx, NY

Deal Details

Private Loan Type

Refinance

Approx. Funding Date

11/16/2023

Property Type

Multifamily

Property City

Bronx

Property State

Loan Term (months)

Lien Type

1st Mortgage

Payment Type

Interest Only

Property Value

$2,800,000

Loan-to-Value

66%

Construction Budget

$1,435,278

Construction Budget Funded

100%

Completed Value

$4,100,000

Loan-to-Completed Value

45%

Construction Project Scope

Construction Completion

Property Neighborhood

Claremont

Property Condition

Fair

Number of Units

Borrower's Plan

Build and Hold

Exit Strategy

Refinance

Borrower Credit Rating

Good

Interest Rate

12%

Origination Points

Deal Summary

Bayport Funding, a balance sheet lender based in Long Island, funded a $1,850,000 1st lien position ground-up construction loan for an 8-unit multifamily property in the Claremont neighborhood of the Bronx, NY. The as-is value was estimated at $2,800,000 so the as-is loan-to-value was 66%. We funded 100% of the $1,435,278 construction budget. The completed value was estimated at $4,100,000 so our LTV based on the completed value was 45%. The Borrower had good credit. They plan to refinance into a long-term loan as an exit strategy. The interest rate was 12% and we charged 2% origination points. The loan term was set at 12 months. This ground-up construction loan was funded in November 2023.