DADDY380
396 Posts |
 Posted - 08/27/2008 : 10:48:07 PM
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The borrower will move forward on this loan without JV financing if it helps—he is on board as he knows the costs and fees on a refi like this—let me know what you can do—he is hungry to make the move and I can send you a ton of documents only after you give me a green light on whether you can touch this
Borrower is primarily looking for Mezannine/JV financing on a land/construction of a commercial mixed use retail/office and condos
Land and the future construction of the commercial building will be located a half a mile from the university of san diego---so its prime location—zip is 92110
Current value of the location at its current status with the zoning and entitlements to date is $1.5m
The true estimated value of the completed project when the building is in place will be $6m
Borrower has a resume to show prior projects and is experienced in getting these completed
The goal is to have a JV investor/lender to come in and give $300k for an equity position in the project and in return will get a 60% return on investement (which works out to 30% return for the average of 2 years) on funds given—this would be obviously in addition to the loan that they would like as well of $900k
The loan would be to 60% or so ltv—and with the additional funds for the equity position would take this to 80% of the total current value of the project
The borrower would like to pay off the 1st trustee for $450k/pay all the entitlement costs in place at $450k-and would take this as a hard equity loan if he had to—and or would take any and all funds as a loan as opposed to an equity partnership if it made the deal work. This money also includes an interest reserve if you were to hold for 6 months of payments or more!
Building will be on a 1/3 of an acre---15,000 sq feet—made up of retail on the ground floor/office on the 2nd floor/and 2 floors of condos
4 story building made up of concrete podium /stucko on the 1st floor—and wood paneling on the other floors
The retail portion consists of 2500 sq feet
Retail will have 10 leases in place/10 units---that will bring in at around $2.50/sq footx2500 sq feet
The 3400 sq feet of office space will be at $2/sq foot
Total rental income should be at $30k/per month which comes to about a 6.5% cap rate
Currently there are no tennents and or leases in place but is common as its hard to lease without the building in place—as assured will be easy to rent out---just need a few months to set that up
The living area condos—would be initially sold as rental’s but would not be opposed to going condo if the market demands it.
It is zoned cv-10—so everything is in place
Allt hey are waiting on is final architect plans and to get all the final permits in place-with this said, all the remaining entitlements will take approximately another 12 months or so to finish
Amnd from that point you will have –and or should I say we—will have 1st dips on the next phase of the project which is the construction loan
Please let me know what you can offer interms of what they need to get done
Thanks so much
Daniel
7869429218 |
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