Bridge Loan for Brooklyn NY Vacant Multifamily Property

Deal Details

Private Loan Type

Purchase

Approx. Funding Date

10/15/2015

Property Type
Multifamily
Property City

Brooklyn

Property State

NY

Interest Rate

%

Origination Points

%

Deal Summary

Private money bridge loan secured by a 13-unit multifamily building in the Sheepheads Bay neighborhood of Brooklyn, NY. The Borrower recently purchased a non-performing second mortgage secured by the property for a big discount and subsequently foreclosed. She needed a bridge loan in order to acquire a discounted, non-performing 1st mortgage from a large bank in the amount of $2,500,000. The Borrower put in $1,000,000 in cash so the loan-to-cost for our bridge loan is just 60%. The subject property is a 7-story 20,000 square foot building on a 6,600 square foot lot. The building is vacant and in need of extensive renovations, estimated at a cost of $2M. The Borrower plans to rehab the property and change the layout to include four additional residential units as well as a commercial unit on the ground floor. The units will likely be condominiums and sold upon completion. We estimate the value of the entire property to be over $7,000,000 upon completion. The term for this commercial bridge loan is one year, and it was funded in October 2015.

Funded By

Ontario Wealth Management Corporation

Direct Lender for Commercial Real Estate Bridge Loans