Ground-up Construction of 33 Condominium Units - Brooklyn, New York
$8,750,000 Construction Loan

On March 28th, 2006 W Financial closed an $8,750,000 first mortgage construction loan, representing a loan-to-cost of 80% for the ground-up development of a seven story, 51,000 SF building with 33 condominium units and 17 parking spaces in Crown Heights, Brooklyn.  

The developers have the significant advantage of having acquired the land (a large, well located corner lot) very reasonably approximately 5 years ago.  Their favorable acquisition cost will allow the developers to sell the 1-4 bedroom units (ranging from 740 -1,569 SF) at very competitive prices, further insuring the success of the project. The plans are fully approved and the foundation is already complete.

Our Private Construction Loan refinanced a maturing construction loan that had been provided by a major New York City Bank. Although the project had encountered many unforeseen delays with respect to excavation, subsoil contamination and underpinning issues, these have all been resolved; the plans have been fully approved and the foundation and several stories of steel are now complete. W Financial now looks forward to the successful completion and sell-out of this exciting project over the next eighteen months.

As experienced developers and commercial mortgage brokers know, with the Prime rate currently at 8.25% the gap between the pricing of "Bank Money" and "Private Money" is getting smaller every day. W Financial can close your client's construction loan in weeks instead of months. This can provide an important edge in getting new condo product to market as soon as possible in an ever-changing marketplace.

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