Purchase and Renovation for a Office Building in Los Angeles
Loan Amount: $1,725,000
Loan Type: Bridge – Acquisition and Renovation
A real estate veteran was seeking funding to acquire this property for his value creation plan. A prime location such as this gave Grand Pacific enthusiasm to fund this loan.
• The property had a 73% vacancy rate in place
• The property was to be delivered 100% vacant
• Borrowers financials were adequate
• Appraisal value was lower than borrower expectations
Although the property was far from being stabilized, we realized the properties intrinsic value and proceeded with our loan process.
We were able to provide a loan that was nearly 100% of the purchasing price by funding the payment reserve, renovation costs, transactional costs, and the majority of funds for the borrowers purchase.
• Repeating borrower with great track record
• With renovations planned, a fully vacant property can be seen as favorable
• Provided payment reserves to support payments
We are glad to be able to close this loan and look forward to seeing the success of our borrower.