Many programs exist to assist clients with value added opportunities.
These programs cover all product types and refer to purchases or
rehabs of existing properties with an executable business plan to
renovate or reposition the property. Once certain work is completed,
the value of the property is much greater than when originally
purchased. While typically these programs are used on apartments or
retail property, they also work for condo conversions, hotel rehabs,
industrial expansion, etc.
Features of this financing include:
-
Loan-to-cost of
75% to as much as 95%. Cost includes purchase of property plus the
cost to reposition product, including leasing commissions, tenant
improvements, construction, interest reserve, etc.
-
Financing
typically handled as construction with total cost escrows and draws
against work completed. Releases are possible on for sale product
-
Maximum loan size
to 75% of stabilized product value; 80% possible on apartments
-
Rates are
variable based on either Libor or Prime indexes. Margins based on
borrower experience and financial strength
-
Recourse is
common on higher leveraged loans dependent on deal financial
strength and resume experience
-
Terms are 12 to
24 months with options for extension available
-
Permanent loan
takeout can be arranged at same time and often at no additional cost
Financial Advantage has extensive resources to structure your
financing requirements. The best method is to contact an
Account Executive for details.
