In this case, the property was located in a community and on a boulevard tailor-made for the asset-type…artist-in-residence lofts. The unique design and pricing were consistent with local market demand, and two of the three units were leased thereby providing a significant income stream to assist in the debt service requirements. The loan to value ratio left Seattle Funding Group of California the necessary margin of safety and the sponsor remained firmly committed with significant equity still in the project. The sponsor’s exit strategy was sound and achievable under current market conditions. Excellent credit, a long track record of experience in the local market and the financial ability to execute the plan rounded out this highly viable loan request.
Result: SFG of CA closed it and the sponsor was able to retire their matured construction financing. Loan-to-value: 46%
This closing typifies the type of product for which SFG of CA has become synonymous…we call it the “A” paper of private money. For SFG, that is defined as requests that hit on all essential underwriting elements including factors such as asset-type, location, local market conditions, loan-to-value ratio, exit strategy, sponsorship financial, experience and credit. When all elements are present, it’s a sure bet that SFG wants to be your first call.
