A Seattle-based multi-family developer was under contract on an assemblage of seven contiguous residential parcels in a prime Seattle submarket. Borrower has significant equity in a stabilized multi-family project in the same submarket and wanted to maximize leverage on the assemblage acquisition.
Red Fox was able to close within 30 days and provide nearly 100% of purchase price by taking an assignment of Borrower’s 50% economic interest in the stabilized multi-family asset. At close, Red Fox is 99.7% LTC and 80.4% LTV on the assemblage, and 63.8% aggregate LTV including the additional collateral. Red Fox’s loan includes a full-term interest reserve which, coupled with the high LTC, allows Borrower to maintain maximum liquidity during the loan term.
Borrower is an experienced multi-family developer and takeout will come via construction loan once plans are finalized and development is ready to begin.