It’s not every day that we see a loan request for a Man Cave, let alone in a core beach location. Making matters a bit tougher was the asset’s current ramshackle condition. Long ago vacated, the old post office had become derelict and until recently, inhabited by the less fortunate.
The Sponsor, however, saw this asset as a rare opportunity in an area where such warehouses long ago gave way to much higher and better uses. They already owned a large portfolio of properties in the beach area and knew the underlying values. SFG saw and quickly understood the Sponsor’s vision. We also possess the flexibility to make the common-sense lending decisions necessary to embrace a non-conventional property and plan.
SFG committed to the financing the same day we saw the asset and met the client. The Sponsorship was strong, and we underwrote the asset for its value as multi-unit residential dirt. Working closely with the Sponsor, we were prepared when the short-fused transaction was ready to close. And though prepared to lend more, the Sponsor only wanted $400,000, or a leverage level of under 37% on our first (and possibly only) request for a Man Cave at the Beach.
Special thanks to Trevor Pike of Chris Love’s Team for aiding in the establishment of value for this rather unusual asset. We appreciate our long-standing relationship with Chris Love and her entire team, and we truly respect their in-depth knowledge of this core beach submarket.
