Four Parcel Assemblage – Boston, MA 

• Loan Amount: $19,586,000
• Purpose of Loan: Purchase and re-zone
• Capital Source: Private Lender 
• LTV: 65% of the ARV and 85% LTC 
• Term:  12 months with 6 month extension option
• Rate: 12%  + Fees 
• Amortization: Interest only 
• Prepay: 9 months interest 
• Recourse: None

​Transaction Details:

• This particular transaction was put into play by our sponsor with the hopes of assembling four parcels and performing a zoning change from industrial to residential.  There were four individual sellers so the relationship dynamics within the transaction were complicated to say the least. 

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Solution: 

• To solve the 85% LTC issue, our investor was able to lend off the future zoned value, in conjunction with allowing a seller second lien to be placed behind the newly established first trust deed. 

End Result: 

• ​As a result, the sponsor was able to complete the assemblage, complete the zoning change, and is now in the process of assembling the remaining parcels around him.