Commercial Mortgage Lenders: Banks making construction loans in Arizona
Financial Compound contact in excess of 60 commercial mortgage lenders in order to obtain a $4.5 million construction loan for a 20% pre-leased retail center in Arizona. In addition to this feat of finding a construction loan post-credit crunch, the loan represents 90% of construction cost. The borrower purchased the land a year prior to funding this loan utilizing a land acquisition loan also obtained by Financial Compound from a different commercial mortgage lender, and processed a rezoning to allow for a higher density use.
This refinance/construction loan paid for all of the borrower’s go-forward costs and allowed him to carry out this transaction with only $400,000 of cash invested. The construction lender was comfortable with the low LTV nature of this transaction and also took comfort in our analysis that the adjacent commercial property acted like an ‘anchor’ to our center and provided alot of pedestrian traffic. Other loan terms included Libor plus 3.5%, interest only, a 2 year loan term, and a 1% lender fee.
Commercial mortgage broker Financial Compound spoke to in excess of 60 commercial mortgage lenders in order to find one willing to fund a construction loan in Arizona post 2007 credit crunch. With construction financing at a virtual standstill this financing represents something unique. Strong commercial mortgage brokers are excellent resources for commercial real estate borrowers looking for acquisition, construction, or refinance loans. Furthermore an adept commercial mortgage broker is often able to obtain joint venture equity or mezannine debt for the local sponsor. A skilled broker like Financial Compound is able to place capital at all layers within the capital stack running the gamut from low leverage to 100% financing.