Lending Query
A property development company specializing in waterfront properties in Miami, Florida, approached Silver Oak Capital seeking assistance in purchasing a new residential building in the Brickell neighborhood. They required a long-term commercial mortgage at 70% loan to value (LTV).
Client Circumstances
The borrower had a successful track record in developing luxury waterfront properties in Miami. They targeted buildings with waterfront access or views that needed renovation or were undervalued. With a proven history of successful acquisitions, the borrower instilled confidence in potential lenders. They aimed to expedite the purchase with cash but needed
immediate access to a loan post-acquisition.
Problems to Solve
Primary challenges in this case included addressing potential environmental concerns related to waterfront properties, such as the need for sea-level rise mitigation measures or adherence to strict coastal development regulations. Additionally, ensuring stability against natural disasters like hurricanes posed a unique challenge requiring specialized risk assessment.
Solution Provided
We presented a customized solution from a reputable Miami-based lender tailored to the client’s needs:
- Loan Amount: $10 million USD
- Loan to Value: 70%
- Interest Rate: 4.25% + Bank Prime Rate
- Term: 7 years
- Repayment Structure: Interest-Only for 5 years, followed by amortization over 20
years - Bank Fee: 1.5% This solution not only addressed the client’s challenging
circumstances but also factored in potential environmental risks by ensuring
compliance with all regulatory requirements and incorporating provisions for property resilience against natural disasters.