New Jersey based developer is gearing up for two new multi-family developments in Essex County, NJ. Sponsor purchased one of the to-be-developed sites in 2021 using a preferred equity structure with another lender and is seeking to leverage that asset to facilitate the acquisition of the second site. Ownership structure of the site purchased in 2021 was a gating issue which greatly limited Sponsor’s financing options.​

Southeast Bridge was able to quickly review and understand the ownership structure and agreed to a loan of 50% LTV (both sites) by requiring a simple modification to the Borrowing entities’ operating agreements which specified ownership rights as it relates to this specific transaction. Southeast Bridge Capital will have first liens on both sites - no inter-creditor or standstill agreements necessary.

Takeout will come via construction loan once plans are finalized. Both sites current zoning allow for proposed developments (no entitlement risk). The loan includes 2 six-month extensions in case Borrower requires additional time with plans / permitting.