Examples of Closed Loans
Learn about the hundreds of projects we have financed over the years. We have financed office buildings, hotels, condominiums, resorts, medical, assisted living care, industrial, apartments, mixed-use, and many other commercial properties. Contact us to learn how we can finance your loan.
Rehab and Construction loan for $2,840,000
Closed 23 days in December
ACL Funds just placed a $2,840,000 construction loan for a 34K sf mixed-use historic building in the Pacific Northwest. The transaction was referred to ACL Funds by another broker, and after a series of brokers had been unable to place the debt. After underwriting and packaging the loan request, ACL Funds submitted the loan request to a select group of lenders on December 6th and the loan was funded on December 29th.
The building is located within a small city whose population is less than 25K and was built in the late 1800’s. It was partially renovated in the early 2000’s and is currently 28% preleased to a borrower-related entity. The small local population limited preleasing, and historic structure all presented challenges in finding financing. ACL Funds researched the market and found strengths that the other brokers overlooked. The MSA has a population of 88K, and there are approximately 40K university students in the area during the year, bringing the local population to nearly 130K. The vacancy in the marketplace was under 5% for commercial properties, and less than that for small office and retail spaces which the subject building is designed to serve. The principals of the borrower are local businessmen with experience in the rehab of similar projects, are solid financially, and were considered good guarantors. A private lender recognized the opportunity to finance a quality asset with financially secure and experienced borrowers and moved quickly.
The loan proceeds paid the existing debt, covered the renovation costs and remaining tenant improvements, and funded an interest reserve, along with most of the costs and points. The loan was underwritten at a 47% ARV, and at 70% LTC. The borrower secured an interest-only single-digit interest rate for 18 months, which closed in well less than a month during the year-end closing rush.
Bridge Loan, 70% LTV, St Augustine, Florida, Loan Amount: $8,125,000
The Bayview Pavilion is a three-story, 92,000 sq. ft. office building with a two-story parking garage built in 1998. The loan facilitated both the building's purchase and the replacement of a vacating tenant occupying 34% of the space. The loan provided 82% of total costs and included tenant improvement and leasing commission costs for a replacement tenant. The loan was nonrecourse and was underwritten at 70% of the stabilized value.
Construction SBA Green 504 Hotel Loan, 85% CLTV, Newark, DE, Loan Amount: $11,500,000
ACL closed on 85% of a combined loan-to-value (CLTV) $11,500,000 construction loan for the conversion and expansion of an existing Comfort Suites Hotel to a six-story, 120-room Four Points by Sheraton in Newark, DE. This property qualified for the SBA Green 504 program and will operate as one of Delaware's first Green Hotels.
The existing hotel was closed for over 18 months in anticipation of the conversion; however, the prior construction lender was unable to fund its commitment and was eventually merged with an institution that does not extend hospitality loans. ACL closed the loan despite numerous prior efforts by both the principals and brokers. ACL's borrower is an experienced hospitality owner and operates a limited-service hotel in the immediate area of the Four Points conversion. The borrower was the original developer of the closed Comfort Suites and was familiar with both the area and local hotel market.
Purchase and Remodel Bridge, 75% LTV, San Jose, CA, Loan Amount: $5,500,000
ACL successfully closed a $5.5 million bridge loan for the purchase and remodeled of the Meridian Avenue Office Building, a 41,500 sq. ft. Class "C" office building in San Jose, CA.
ACL became involved when the buyer had only three weeks remaining on their purchase contract, after which their deposit would be lost. The borrower stepped into the position of a previous seller who had completed most of the due diligence but could not close, and there were backup offers waiting to purchase the property if our borrower failed to close.
The loan closed within the contract period. The purchase price was $7.1 million, and the property needed $2.7 million in remodeling and lease-up costs. The property had not been properly maintained by the seller and was only 67% leased. The loan had an initial funding of $4.6 million, which was 65% of the contract purchase price, and a new renovation reserve account of $900,000 was built into the loan structure.
A borrower is a group of experienced real estate professionals who recently completed the acquisition, renovation, and repositioning of a similar office building in South San Francisco. The borrower has plans to upgrade the property to a Class "B" property and stabilize the occupancy.
Refinance, Branson, MO, Two Non-Flagged Vacation Time-Share Hotels Refinanced, Loan Amount: $6,900,000
ACL closed this $6,900,000 bridge loan for the refinancing of two non-flagged vacation time-share hotels in Branson, MO. They include a 48-key, time-share hotel known as the Grand Regency Resort, and an 88-key, time-share hotel known as the Colonnade Hotel.
The borrower searched for over a year before an ACL broker brought the file to us for review. ACL analyzed the file, put together an underwritten loan package, and brought in one of our investors who funded the loan that no one else could.
The loan paid the maturing existing first mortgage, along with secondary debt associated with the two properties' recent renovations. Both fee simple hotels totaled 136 keys, with many suites. The properties had strong operating cash flows from the hotel operations, and the borrower was a multi-property owner in Branson, who was experienced and successful in that marketplace.
The loan transaction had numerous and challenging hurdles, which required a great deal of time and effort to understand the transaction, underwrite the risks, and advise the borrower before submitting it to ACL's investor. Both properties originally marketed deeded time-shares to the public and were later switched to a points system. The switch caused time-share sales to stop and start, which made marketing efforts difficult to nonexistent at times, and time-share sales revenues to be intermittent. Both properties had extensive title work that was required before a title policy acceptable to the lender could be issued due to both the time-share sales changeover and imperfect title work completed during the original acquisition. Since the acquisition of the hotels by the borrower, tax returns were not filed, and the financial statements produced since the acquisition were not audited.
Both the arranged bridge financing and the title, organizational, and financial work that was completed to qualify for the financing has put the borrower in a position to pursue long-term permanent financing next year.
52 Units Purchase, 30/30 years fixed rate, 80% LTV in Pueblo, Colorado. Loan Amount: $2,200,000
ACL closed a purchase of a converted condominium project. It closed in 45 days with a 10-year fixed 30-year amortization low-interest loan. The seller was under pressure to receive his funds to purchase another multifamily property.