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Follow on Google News | ReCap Secures $15 million, Non-Recourse, 30-year fixed rate, Construction Bridge to Perm LoanReCap Secures $15 million, Non-Recourse, 30-year fixed rate, Construction Bridge to Perm Loan for Single Tenant Medical Office in Long Island, NY
By: Real Estate Capital of America, ReCap "The loan was difficult on many fronts," says Johnny Su, COO of ReCap. "Office building in Long Island – suburb market- is very difficult to finance because most of the office jobs are in New York City. Also, there is an oversupply of office building in Long Island and it was the hardest hit asset class during the Great Recession of 2008, with still very high vacancy rate around 10%" explains Su. "Single tenant, special use amplifies the risk of tenant default, rental income concentration, and lower recovery rate since it requires reposition and even rehab of the office building to convert from single tenant, special use to a multitenant, general use office building." he adds. To make this financing assignment even more challenging, the client did not need any construction financing but rather requested a $15 million cash out loan with $5 million released during construction and $10 million after construction to fund a separate and unrelated purchase. The $5 million bridge loan was 100% loan to cost and total the $15 million permeant loan was 300% loan to cost and 95% Loan to value. "Once again, we delivered the financing for our clients despite all the challenges and we are proud that our client trusts us to come through for them, no matter how difficult the scenario may be," stated Su. The loan was a non-recourse, 30-year fixed rate loan with debt service coverage ratio (DSCR) of 1.01X. Tomer Dicturel, CEO of ReCap, added, "the Great Recession has only strengthened and solidified our relationships with our clients, partners, and lenders. They appreciate, more than ever, the added value of our expertise in the commercial finance arena. We continue to deliver unparalleled financing solution and structure for our clients to provide them the additional competitive edge over their competitions." ReCap is a prominent finance boutique assembled by distinguished experts. The professionals at ReCap assist their customers throughout the entire loan process. Their commitment to service and excellence keep customers satisfied and referring ReCap services to their colleagues. "We work hard to provide the best financing in complicated deals," said Dicturel, "We succeed where others fail." WWW.ReCapNY.com End
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