Project Description

$1,100,000 First Mortgage Single-Family Refinance | Brooklyn, NY

A $1.1 million first mortgage loan was advanced at an interest rate floating with the WSJ Prime + 3.75% and a 3-month lockout period. Proceeds of the loan were used to refinance a $200,000 first mortgage in favor of a private lender and the balance used towards the purchase of a multi-family investment property in Staten Island. The Property is a 40’ x 100’ corner lot that is improved with a 3,000SF, 2-story single-family home consisting of 4 bedrooms, 3 bathrooms, and a 1,500SF finished basement in the Manhattan Beach neighborhood of Brooklyn, New York. The streetscape is occupied by luxury homes with an average sale price of $2 million. An appraisal completed on behalf of the borrower concluded a value of $2.2 million for the Property which was reflective of the value of homes within the neighborhood. Owemanco, based on its analysis of the neighborhood and conversations with local intelligence, ascertained the value of the home to be closer to $2 million yielding an LTV of 50% on the appraised value of the home and 55% on our own value of the home. The Loan comprises a sponsor with healthy annual cash flow from their property portfolio which Owemanco has verified through their recent tax filings. Exit Strategy is via institutional refinancing.