Jamaica Plain, MA

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Jamaica Plain, MA

Background

Loan Type Acquisition and renovation loan
Collateral First mortgage
Property Type Three-unit condominium conversion plus two new-construction townhomes
Loan Amount $1.45 million
Underwritten LTV 67%

Investment Highlights

  • Borrower was a team consisting of a seasoned general contractor and attorney
  • Development approvals secured prior to First Boston Capital Partners (FBCP) loan closing
  • Borrower purchased 4,000 SF three-family for $650,000 ($217,000 per unit); business plan was to gut renovate the three-family into luxury condominiums and build two new-construction townhomes on excess land
  • Project costs totaled $1.95 million ($390,000 per unit), including construction costs and interest reserve
  • FBCP's loan financed acquisition and renovation; equity at closing was in form of seller-subordinated $500,000 second mortgage

Status

  • Paid off as agreed; borrower sold units for approximately $2.3 million ($460,000 per unit)

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