Updated over 4 years ago on . Most recent reply
Rehab Funds Needed - Second Position Only
My wife and I own a successful retail business and are expanding to a second location. We're buying a 15,000 SF, 2 story + basement commercial property in the center of the historic downtown of Redmond, OR. We intend to occupy the first floor and basement with our retail business, and the second floor could accommodate 8 apartments. Right now the second floor is 5000 SF, totally open. I have a full design for the apartments and budgetary pricing from a contractor. There was so much uncertainty surrounding the financing, design, and profitability of the residential buildout that we have decided to move forward with an SBA lender for the building purchase and retail improvements and leave the residential element for the "future". It was most important to us to secure the building and be able to proceed with the retail element, and I didn't want to lose that deal while I was toiling away with hard money lenders who were non-committal at best. The default plan is just to lease out the second floor as-is, which would be perfect for yoga, martial arts, or even offices.
This is where you come in. I'd like to proceed with the apartment buildout now for a variety of reasons, including the amount of disturbance it would be to our business in the future to have such a big project taking place above us. This is about a $850K project, and we can contribute ~ $150K cash to it. Looking for a lender for the remaining ~ $700K of the residential buildout who would accept being in second position to the SBA lender. This would be about 12 months, and I'm anticipating typical hard money terms, ~3 points and 9-10%.
Please message me if this interests you. I have extensive design, construction, and property management experience, so this is right in my wheelhouse. The property is a gem and there is a very high demand for new rentals in the downtown core of this booming city.