Somerville, MA

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Somerville, MA

Background

Loan Type Renovation loan
Collateral First mortgage
Property Type Two-unit condominium conversion
Loan Amount $910,000
Underwritten LTV 67%

Investment Highlights

  • First Boston Capital Partners' (FBCP's) fifth loan to borrower, who had substantial experience buying and renovating residential property in Somerville and Medford area
  • Borrower purchased 2,916 SF two-family for $675,000 ($337,500 per unit); business plan was to finish portion of lower level and gut renovate units
  • Project costs totaled $1.01 million ($505,000 per unit), including construction costs and interest reserve
  • FBCP's loan financed acquisition and renovation; borrower invested $100,000 cash equity at closing
  • FBCP's loan was secured by additional collateral in form of second mortgage on another condominium conversion in Somerville, which was completed and on market at time of loan closing

Status

  • Paid off as agreed; borrower sold units for total of $1.45 million
  • FBCP has now financed over a dozen projects for borrower

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