Brooklyn, NY

$1,500,001

Multifamily

Purchase

10/15/2015
Transaction by
Ontario Wealth Management Corporation
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.