Seeking 40% LTV Alternative Development Loan
Seeking development loan for $1,500,000 to redevelop phase 1 of existing industrial complex into lifestyle community. Property is 300,000 sf of block and steel construction located on 12 acres .
Some highlights -
200,000 sf is on National Historic Registry granting 20% Federal and 25% State Tax Credits
All 300,000 qualifies for Abandoned Building Tax Credit
Tax credits can be brokered for cash.
Property has been approved for Tax Increment Funding by city, total amount to be determined after PUD filing.
Property is located in New Opportunity Zone as part of the Tax Cuts and Jobs Act of 2017. Not entirely sure how this could benefit a lender yet.
Current as-is value of $4 - 5 million ( waiting for appraisal to verify)
Current note private note balance of $650,000, split equally bteween 2 family trusts. Family A wants cashed out, Family B will carry 2nd postion note for $325,000.
$1.2 mil for construction of Phase 1 to provide roughly 100,000 sf of leaseable space, along with some infrastructure improvements.
Currently producing $3500 in rent as-is.
Will have no less than 25,000 sf @ $10 per sf annually, preleased before funding.
My ideal lending scenario is $1.5 mil @ 3 points upfront or less and 12% interest or less with 3 -6 month deferred payment. Would like to fund project before August 31st. Will have market study, appraisal, executive summary, income projections, construction costs, and architectural renderings complete within the next 7-10 days.
PUD is being filed July 30th for first city council reading last Monday of August.