Ground Up Construction Loan – partial recourse
72 months, 3 years of Interest Only followed by 25 year amortization
Recourse burn-off after lease up
No prepayment penalty
Banyan Commercial Capital was able to secure a lender that was able to get comfortable with less than 50% pre-leasing. This property will consist of 5 restaurants, making it more difficult during Covid than prior. The lender was able to minimize (starting at 25%) the recourse during construction and lease up. After lease up, the loan is non-recourse. This was accomplished due to the borrowers great experience in the sector and geographic area.
The property is located adjacent to a large regional mall, and in an area that has many office buildings. The sponsor smartly chose this location for this development due to the lack of available food options nearby. The sponsor is working to create the optimal tenant mix to enhance the success of each tenant.
This loan was for a repeat client.
Zach Nimhauser – email@example.com
Michael Brown – firstname.lastname@example.org