Park Avenue Townhouse Conversion
$4,025,000 First Mortgage Loan | Term: 18 months
The owner of this prime Park Avenue 8-unit townhouse purchased the building in 2000 with a goal of vacating the tenants,  changing the Certificate of Occupancy and then re-selling as a single-family home at a significant premium. As so often happens in New York City, the process turned out to take much longer, and cost much more than originally expected.The owner made progress, signing buyout agreements with several tenants but ran out of time and money to complete the process.Our initial loan amount of $3,550,000 refinanced the existing debt and satisfied various obligations. It also established a one year interest and payment reserve that will give the owner time to vacate 2 of the 3 remaining tenants, where buyout agreements have already been signed, and to then market the building and achieve the premium price that we believe a Park Avenue property will achieve. A second and third tranche was also built into the loan structure to provide funding for the tenant buyouts.
Back to Recently Completed Loans
|
