Property Development

A developer needed funding to purchase raw land to expand its investments. We lent $6.75M at 15.45% on a 1-year term to get them the short-term funding they needed.

Helping an auto repair lender grow

Type: Senior Secured Loan
Collateral Type: Land
Amount: $6.75M

Projected Yield: 15.45%
Term: 1 year
Geography: BC, Canada

Funding used to purchase raw land for the development of approximately 1,000 units for student housing, as well as some light industrial. 40 acres situated adjacent to a prominent university.

Principals of the Borrower have significant development experience.

Although we do not normally finance land developments, in this instance, we were able to secure a guarantee from an operating entity, in the hospitality industry, with an ownership stake in the property acquisition as well as personal guarantees from individuals with significant net worth in various other development and real estate assets.

Purchase price was $7.7M; we lent approximately $6,7M or 80% LTV (made possible by all of the additional collateral obtained from the principals). Land was appraised at $8.45M.

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