Worth Avenue Capital closes $3.25 million construction loan for 10,000 s/f property

Greenwich, CT Worth Avenue Capital, LLC (WAC) has closed a $3.25 million construction loan for a residential home builder for the purpose of demolishing an existing home and building a new luxury home on the same lot in the Millbrook section of town. The loan is secured by a blanket second mortgage on multiple properties in the town with an underlying LTV of approximately 55% “as is”.

The sponsor is a multiple repeat borrower for WAC who has partnered with WAC on numerous construction projects on other homes in town over the last several years. As part of this construction project, the borrower will construct a new 10,000 s/f house on the property that will have a market value in the $10-$12 million range upon completion. Once construction has been completed, the borrower will list the house for sale and will pay off WAC’s construction loan upon the sale of the house.

WAC has been bullish on local real estate for many years and has been an active lender in town during that time frame. As a result of the recent mayoral election in New York City, the town will be one of the beneficiaries of the further migration of many wealthy, high-net worth families out of the city to the town and the surrounding areas. Real estate prices will continue to rise in this enclave and WAC is planning on allocating more of its capital into increased deal flow for new loan originations in the town.