Property Type: 72 Unit Apartment Complex Loan Amount: $5,700,000 Loan: Construction and Permanent Financing
Transaction Summary: A developer approached us with his plans to convert a dormant college building into a 72 Unit Apartment Complex. The plans had merit, however, the developer lacked the capital to do the project. New York Commercial Lending did a comprehensive financial analysis and looked at all of the available options. We concluded the property could be retrofitted for $40.00/SF and that the value in the land and buildings could be credited as equity towards the project. We also advised the developer to form an identity of interest with a qualified builder who would be willing to substitute their profit for an ownership interest in the project. New York Commercial Lending then processed and funded a 40 year construction to permanent mortgage under HUD’s Section 221d(4) program. This loan provided the developer with 97% financing, thanks to the equity credits we were able to recognize.