CASE STUDY THREE
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Four Parcel Assemblage – Boston, MA
Transaction Details:
Solution:
End Result:
Four Parcel Assemblage – Boston, MA
- Loan Amount: $13,400,000
- Purpose of Loan: Refinance/Renovations
- Capital Source: Private Lender
- LTV: 65% of the ARV and 80% LTC
- Term: 18 months
- Rate: 12% + Fees
- Amortization: Interest only
- Prepay: None
- Recourse: None
Transaction Details:
- This particular transaction was put into play by our sponsor with the hopes of assembling four parcels and performing a zoning change from industrial to residential. There were four individual sellers so the relationship dynamics within the transaction were complicated to say the least.
Solution:
- To solve the 85% LTC issue, our investor was able to lend off the future zoned value, in conjunction with allowing a seller second lien to be placed behind the newly established first trust deed.
End Result:
As a result, the sponsor was able to complete the assemblage, complete the zoning change, and is now in the process of assembling the remaining parcels around him.