When a new building is finally completed, investors are in a hurry to get rid of high-interest construction financing. Unfortunately, without tenants, banks aren’t in a rush to lend. Lone Oak Fund’s low rates and quick funding can allow for a borrower to find quality tenants for their building without worrying about a prepayment penalty.
This 54,000 square foot, 67-unit apartment building in Koreatown was a no-brainer for loan committee. Our $21,000,000 loan was paid off the construction financing with an attractive 5.90% interest rate, and allowed for some cash-out to put the finishing touches on the building.
Loan Amount | $7,200,000 |
Transaction | Acquisition |
Collateral | 26,561 square foot office building on a 21,058 square foot lot |
Location | Newport Beach, California |
Purpose of Loan | Purchase of office building for healthcare company |
Exit Strategy | Permanent financing |
Long Term | 12 Months |
Rate | 6.90% interest only |
Additional Terms | No prepayment penalty. No yield maintenance. Non-recourse. |
