Worth Avenue Capital closes $3.5 million line of credit to a CRE dev. group

March 08, 2019 - Financial Digest

Hartford, CT Worth Avenue Capital, LLC (WAC) closed a $3.5 million line of credit to a CRE development group. The purpose of the loan is to provide construction financing on a bridge basis to enable the borrower to continue the construction and development of a CRE project with class A tenants on a sixteen acre parcel of land in Fairfield County. One of the members of this development group is a repeat borrower of WAC.

The borrower recently purchased this parcel of land with the assistance of conventional bank financing and has obtained the necessary approvals from the municipality to construct a multi-tenant commercial development that includes CVS, Chick-Fil-A, T-Mobile, Panera Bread, Mission Barbecue, Cafe Nero, Texas Roadhouse, and several others. 

The developer is also “spinning off” a small portion of the land and has that piece under contract for sale to a Marriott franchisee who will construct a new Marriott hotel on that particular site.

The loan is secured by a second mortgage on the sixteen acre parcel with an underlying LTV of approximately 46%. Upon the sale of the piece to the Marriott franchisee, the LTV on this loan will be reduced to approximately 30%. The loan was funded by WAC as part of a syndication through a cadre of WAC’s private investors.

The borrower is in the process of finalizing permanent construction financing on this project from a commercial bank and will pay off WAC’s loan in full within six months or so upon closing on the conventional bank financing.

Comments

Add Comment


More from the New England Real Estate Journal