Greenwich, CT Worth Avenue Capital, LLC (WAC) closed a $350,000 short-term bridge loan to a builder of high end “spec” homes. The loan proceeds will be used to assist with the completion of one of three separate “spec” homes that the builder currently has under construction. The loan is secured by a blanket junior mortgage on all three of the homes with an underlying LTV of 50%. The construction of one of the homes will be completed in September and the home will then be listed for sale and should attract a qualified buyer for the property by sometime in the fall. Upon the sale of this house, WAC’s short-term bridge loan will be paid off in full.
This builder is a repeat borrower of WAC’s and has already built and sold several “spec” homes in the town. The market for “spec” homes in town is still very robust and, despite this year’s increase in interest rates, buyers are still anxious to purchase these homes in a competitive seller’s market in this town.
WAC views Greenwich, Connecticut as somewhat of a “recession proof” enclave as it continues to fund solid commercial loans in Greenwich for both multiple new and repeat borrowers.