Financial Compound arranged a $5 million, 100% of cost construction financing for a 30,000 sf shopping center. The proposed “High Image Street Frontage” center is located near a major Interstate offramp, and the surrounding area is densely populated and home to numerous big box retailers. At the time of construction financing the property was 50% pre-leased. The loan proceeds included 100% of hard costs, soft costs, interest reserve, as well as financing and closing costs.
Financing terms included a Prime plus 2.00%, interest-only rate, 12 months loan term with two six month extensions, no prepayment penalty, and 4% lender fee. Loan to value less than 65%. Bonded, fixed price general contract required. Financial Compound is a commercial mortgage broker that has close numerous 100% of cost commercial real estate finance loans.