This immediate gap or transitional financing was necessary for the owner to retire an existing, matured obligation. Though the subject property is located in an “A” submarket, three primary factors complicated the underwriting approval. The owner is a foreign national living in Europe, the apartments did not cash-flow under traditional guidelines and the remaining economic life of these older apartments is short. In support of the lending decision, Seattle Funding Group was able to secure sufficient credit history on the borrower and establish current property value based upon the approved plans to demo and construct a well-designed, market-suited, townhouse project on the site. Coronado is an “A” location and highly desirable residential market across the bay from San Diego. This, together with the cooperative efforts of SFG staff, the referring broker and borrower, allowed us to close this otherwise difficult transaction. And given the experience and coastal orientation of SFG’s construction lending program, we may have identified our next Coronado construction project!sfg1733
