Construction Completion in Rialto
The Story:
This $6.8m refinance and construction completion loan paid off existing debt and provided the funds necessary to complete construction of Phase I of this terrific 104-unit project. The first 45-units, leasing office and rec facility were well underway, as were the grounds, entry gate and site preparation for Phase II. It was an excellent project, and at the same time, a textbook example of loss of priority, with deep exposure to mechanic’s liens. Consequently, one of the biggest challenges was underwriting that risk, and securing full, extended title insurance coverage with mechanic’s lien endorsement for a project so far along, and one on which work never stopped.
The Answer:
Fortunately, the sponsor was very familiar with multifamily ownership, development and management, and her experience was evident in the thoughtful design and construction quality. Working through the project underwriting, title issues and other challenges required considerable time and focus from all involved, but in the end, it became yet another excellent addition to Seattle Funding Group’s portfolio of high-performing loans and sponsors.
Our sincere thanks to Krystle and Mitch of Pacific Shore Capital for bringing this opportunity to SFG, and for working closely, never losing focus, until it was recorded and closed. You certainly earned your $68,000, as well as our respect and appreciation.
