Commercial Mortgage Lenders: Land Acquisition Loans in Washington State
$19 million in land acquisition financing (95% of all-in-cost) was provided for this 1,600 acre semi-entitled residential single family lot land assemblage, which is part of a larger, 3,000 lot SFR master planned community. To-date, about 500 lots have been built. The community includes two new 18-hole championship golf courses. The loan proceeds funded 95% of: (1) Land acquisition, (2) Phase 1 development, (3) Interest reserve, and (4) All Closing costs.
Financial Compound was able to structure the financing with no pre-sales required by demonstrating the critical shortage of residential lots in the area; partially due to growth restrictions imposed by the Washington State Supreme Court. The borrower projects to develop approximately 450 lots in Phase I, ranging from 2,500 to 7,000 s.f. The finished homes are intended for the moderately priced housing market. The commercial mortgage lenders who provided this financing included the following terms: 19% rate with 8% interest-only pay rate. Seven year, non-recourse loan, open for prepayment with no penalty.
Commercial mortgage lenders enjoy working with commercial mortgage broker Financial Compound due to our large flow of business and technical expertise in sourcing, analyzing, and placing commercial real estate transactions. Many commercial mortgage lenders require that borrowers utilize a skilled commercial mortgage broker such as Financial Compound so that all of the deal points, both good and bad, get presented and analyzed objectively prior to the lender digging into its due diligence.