Private Money Loan for Harlem NY Condo Development Project

In July 2016, Owemanco funded a private money loan for a 8-unit condominium construction project in Harlem, Manhattan, NY. The Borrower is an experienced New York City real estate developer who had an existing hard money loan which was coming due. The project was 85% completed and additional funds were needed to complete the project. Owemanco paid off the previous hard money loan of $3,000,000 and immediately provided $500,000 in cash out funds. Another $500,000 will be held back and provided as work is completed. Based on our in-house valuation, the LTV (loan-to-value) is conservatively 57%. Two of the units are currently on the market. The Borrower plans to complete the other six units and sell in order to pay off our loan. The property is a 7-story building containing eight for-sale condominium units totaling 10,500 square feet. The Building sits on a 26’ X 70’ (1,820 SF) lot in Central Harlem, close to Columbia University. It is located a 5-10 minute walk from two subway lines which provide easy access to Lower Manhattan. The rates and terms of our loan were much more favorable than the previous lender’s, and generally we are more competitive than other private lenders in New York.