Property Type: Restaurant Loan Amount: $405,000 Loan: Acquisition
Finance Challenge: The chef of a well know restaurant wanted to acquire the business and real estate assets for $600,000 but had limited resources. The loan request had been denied by banks because on their concerns over the restaurant industry, collateral value of the real estate and limited equity. New York Commercial Lending structured the request with a $415,000 1st mortgage and allowed the seller to holdback a $185,000 second mortgage. NYCL underwrote the loan based on the going concern value and required a standby agreement with the seller’s payments for one year. The loan has met the borrower’s goal of securing a highly leveraged transaction.