Downtown Los angeles. The bottom floor is occupied, but the top seven floor are being renovated.
The client has 10.25% on his current loan and wants to refi into an ARM for the short term. Getting his rate lower is the only benefit for him. The building is a total of 80,000ft2. There is a balance of 1.5M and the building would be valued at 8M........The owner is 750+ FICO and we can use personal income and financial statements. I am looking for a specialized lender who can handle this project. The building is in the process of being renovated, ands no money is needed for that only to refi his existing loan. Thunderbird productions is the owner which has a thick portfolio and owns many other properties. Another product he is interested in is a 5 year loan amortized over 30....

Joshua,

Give me a call in my office ASAP...

My company CFA Capital Partners are direct private lenders and this scenario might work in our guidelines.


Transitional/Income Producing Loan Financing
Definition: Any commercial, income producing property, including “Value-Added” properties in a “Repositioning” phase or under construction. Non-recourse and flexible prepayment options available.
Property Types: Anchored Retail, Strip Mall, Industrial, Warehouse, Office, Hotel/Motel, Mixed Use, Multi-Family, Vacant or Partially Vacant Income Producing Property.
Loan Size: $5mil to $200mil Lending Area: US Loan Term: 1 to 5 yrs Amortization: Interest Only LTV: Up to 85% LTC: Up to 90%
Pricing Index: 175 to 350 bps over 6 Month LIBOR Fees: 1%-3%
Number of Days to Close: 15 to 45 days

Four questions:
1. What is the current monthly income from the property?
2. How long before the renovations are complete?
3. Are there any preleases for the vacant space?
4. How much lower would the rate have to be for the borrower to consider refinancing? The current rate of 10.25% sounds pretty good to me.