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Seattle, WA
A real estate investment fund with more than 40 members wanted a new construction loan to finance a build in Seattle, Washington. The plan for this tear down/rebuild project was to create six energy-efficient townhomes in the Seattle’s Queen Anne neighborhood, just blocks from the Space Needle.
By the Numbers:
6
Units
$3.6M
Loan Amount
$6M
After-Repair Value
56% LTARV
Loan to Value Leverage
The Opportunity
A real estate investment fund with more than 40 members wanted a new construction loan to finance a build in Seattle, Washington. The plan for this tear down/rebuild project was to create six energy-efficient townhomes in the Seattle’s Queen Anne neighborhood, just blocks from the Space Needle.
The group wanted to have only one person sign the loan documents, and they wanted a non-recourse loan with standard carveouts. They came to Lima One to get the specific financing solution needed to get this deal done.
The Solution
Lima One financed the townhome development with a $3.6 million blanket loan. The 19-month interest-only loan has the non-recourse term the investors wanted, along with the advantage of no interest charged on undrawn construction funds.
This financing fit the investment group’s needs and allowed them to complete the six units, which will have a completed value of over $6 million. This will lead to significant profit thanks to Lima One’s commitment to loan solutions that are flexible enough to fit any investment strategy.
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