Acquisition of Vacant Hollywood Building
Lone Oak Fund, LLC just closed a $900,000 first trust deed, secured by a vacant, 8-unit apartment building in Hollywood. The 12 month term was priced at 7.90% interest only for the first six months and 8.30% interest only for the last 6 months, with a 2.00 point origination fee to Lone Oak and no prepayment penalty. The borrower came to Lone Oak because he was unable to qualify for bank financing due to the building’s vacancies. Borrower plans to renovate and lease the apartments at market rent. Once the property is fully leased, Borrower plans to refinance with a conventional loan.
|Property Type||Vacant, 8-unit apartment building; 6,700 square feet, on a 6,400 square foot lot.|
|Loan to Cost||50%|
|Rate & Term||12 months at 7.90% interest only for months 1-6, and 8.30% interest only for months 7-12|
|Origination Fee||2.0 points|