Condominium conversion - West 20th Street, Chelsea, NYC
$625,000 Second Mortgage Loan | Term: 1 year
This was originally structured as a second mortgage that was placed on a 9-unit rental property being converted to a condominium. Winter & Company had originally arranged the first mortgage with a local savings bank to finance the developer's acquisition back in 2000. The developer used the loan proceeds of our second mortgage to finish the units and to provide a down payment for another conversion project. As soon as the condominium plan became effective the developer refinanced his personal triplex units and satisfied the first mortgage loan. Once the separate tax lots were created, our loan converted to a first mortgage on three of the new condominium units, including 2 newly constructed penthouse units valued at $1,100,000 each. At all times, the total loan to value ratio will be less than 30%. Once the permanent certificate of occupancy is issued, as the condominium units are sold, the sale proceeds will be utilized to repay the loan.
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