Cross-Collateralization of San Francisco Triplex and Condos
Lone Oak Fund, LLC just closed a $6,000,000 bridge loan, cross-collateralizing a San Francisco Triplex with two free and clear condominiums. Borrower purchased the triplex for $6,000,000, and by crossing the 2 condos, was able to obtain 100% of the purchase price.
The out-of-state Broker coordinated the deal via telephone and Lone Oak issued an LOI within a few hours. The 6-month loan was priced at only 7.90% interest only, and 0.75 point. The broker earned $45,000 on the transaction.
Additionally, as a courtesy, Lone Oak allowed the borrower to pay 50% of the origination fees up front and the other 50% at the end of the term. As always, there is no prepayment penalty.
|Transaction:||Purchase & Refinance|
|Collateral:||High-end, 6,000+ sq. ft. Triplex on a 3,500+ sq. ft. lot, a 1,200 sq. ft. and a 2,890 sq. ft. condos|
|Rate:||7.90% interest only|
|Origination Fee:||0.75 points|
|Extension Option:||6 months at 7.90% interest only; months 1-3 at 0.75 point and months 4-6 at 1.00 point|