Land Purchase in SoMa, San Francisco
Lone Oak Fund, LLC just funded a $1,800,000 first trust deed secured by a 7,600 square foot lot in the popular SoMa neighborhood of San Francisco. Borrower purchased the parcel, which is currently zoned for and occupied by a car wash, for $3,900,000. Borrower plans to tear down the existing structure and develop high efficiency studios atop a ground floor commercial space. Borrower came to Lone Oak needing a bridge to a construction loan, and once Borrower acquires the necessary permits, Lone Oak will be taken out with the construction loan. As Lone Oak never has a prepayment penalty, Borrower can take us out as soon as the construction financing is secured.
The 12 month loan was priced at 8.60% interest only, and 1.50 origination points, with a 6 month extension option at 8.90% interest only and 1.00 point. Additionally, Lone Oak assisted borrower in securing mezz financing in the amount of $350,000 from United Security Investors, for a combined loan amount of $2,150,000.