Los Angeles Private Lender Expands into Distressed Residential MarketOctober 17th
CFC’s advisory practice places a $25,000,000 warehouse credit facility to Seattle private lender
CFC, advisory practice structured and placed a $25,000,000 secured revolving warehouse line of credit for a leading Seattle based private lender. The facility is superior to other facilities available in the market due to a 3 year term, no collateral substitution fees, the ability to draw down, repay and draw down again, and pricing in the low 6’s. This credit facility was structured as a borrowing base with UCC1 filings to eliminate the need for filing recorded assignments which can be costly and labor intensive requiring additional resources, time and staff. CFC spent roughly 6 months building this product with an institutional investor and special servicer.
CFC arranges a $25,000,000 Term Loan Facility with a Bay Area portfolio manager.
CFC’s advisory practice arranged a $25,000,000 15 year loan secured by a pool of stabilized SFR’s that were remodeled and then leased. CFC structured a 5.25% 15 year loan with the first 5 years interest only and the remaining 10 years fully amortized. This facility was far superior to those offered by the Borrower, long term Ovate capital relationships and reduced the borrowers debt service by $100,000 per month and allowed the borrower to pull out $10,000,000 of cash which the Borrower will use for additional purchases. Because the first 5 years of the loan was structured as interest only, the borrower has excess cash flow to build additional assets into the pool for additional cash flow and long term capital gains. The payments on the first 5 years of the facility are considerably less than other institutional programs with amortization, leaving more cash flow for additional acquisitions and portfolio expansion.
CFC closed a $30,000,000 Secured Revolving Line of Credit to largest Flipper in Las Vegas equivalent to a $120,000,000 forward commitment.
CFC has closed a $30,000,000 BLOC (Revolving Line of Credit) to the largest SFR Flipper in Las Vegas. The operator is flipping roughly 80 homes per month and is expanding currently with the goal of flipping 1,300 homes per year. With an 80% advance on cost, and rehabilitation, the borrower was able to cash out on a large portion of existing inventory and use CFC’s higher advance capital to expand into the Georgia and Florida markets. The facility was structured as a true revolve, so the operator has the ability to draw down on the line as many times as required throughout the course of the year with no additional points or fees charged other than cost of standard BPO, and Title etc. The borrower is averaging 90 day holds, thus achieving 4 turms on the capital which is the gross equivalent of a $120,000,000 phased loan commitment.
CFC closes $12,000,000 Texas Hotel in Odessa
Capital Funding Corporation Of America closes $12,000,000 of debt and equity for the purchase of a 118 room Hotel in Odessa, Texas. Housing as expensive as New York City’s, has become the norm in Midland and Odessa amid an oil boom that is rapidly reshaping the area. With oil prices above $80 a barrel, more than double their level in early 2009, oil patch workers have flood. here from other parts of Texas, Oklahoma and the nation, lured by jobs working on rigs or driving trucks. Today, the Permian Basin accounts for 14 percent of the nation, oil production. That is far more than the combined output of other Texas fields, including the Eagle Ford Shale, and more than the Bakken Shale in North Dakota, another major drilling region, which is said to outproduce Saudi reserves by the year 2020.This latest boom has been driven by hydraulic fracturing, or fracking, the technique of shooting water, sand and chemicals deep underground to crack hard rock and release oil. As a result of the increased workforce in Midland Odessa, the hotel market is seeing some of the highest occupancy levels on record. Capital Funding Corporation structured $9,000,000 of debt and $3,000,000 of equity for the transaction and closed the deal in under 14 days. The investment thesis behind the investment was high DSCR and Debt Yield, the outlook for expanding employment trends in the market, and the Hotel had the lowest ADR in the comp set. Other factors considered were the barriers to entry for new product coming online and the lack of workforce to build new product due to the high salaries being offered by large oil companies such as Halliburton.Midland and Odessa, which ranked first and second among U.S. cities in average annual growth rates for the past decade, according to a study from the U.S. Conference of Mayors, sit atop the Permian Basin, one of the nation’s richest stores of petroleum.
CFC closed a $2,750,000 Bridge Loan to Central Valley Self Storage Operator
CFC closed a $2,750,000 bridge loan against Three Central valley Self Storage units for an entrepreneur whom took over the failing project from an unsophisticated owner / operator who was not making payments to his investors. The new property appraisals came in significantly below the borrowers stated value, as such CFC negotiated Seven (7) discounted subordinate payoffs with investors shots had not received payments in many years but whom were not able to foreclose on the first trust deed. CFC also negotiated several note subordinations and achieved over $1,000,000 in principal balance reduction for the borrower.
CFC closed an $8,000,000 Term Loan Facility Northern California SFR portfolio
CFC closed a 5 year $8,000,000 Term Loan Facility with a leading Oakland based investor managing over 1,200 rental units. The team at CFC was able to quickly create a custom product for the operator who is using the capital to leverage entry-level rental properties. The capital was provided at 9% I0 for 3 years with 2 one year extensions available. The borrower also received a $3M RLOC for his trustee-based operations.
CFC closed a $1,250,000 Secured Revolving Foreclosure Line of Credit to an East Bay Foreclosure Operator.
CFC closed a $1,250,000 secured line of credit with an operator that specializes in foreclosure and REO purchases and rehabs. The operator successfully identities foreclosure opportunities in the $200,000 to $400,000 range in local East Bay neighborhoods.
CFC closed a $1,000,000 Foreclosure Line of Credit with a Fresno based foreclosure operator.
CFC closed a $1,000,000 secured line of credit with an operator that specializes in foreclosure and REO purchases and rehabs. The operator successfully identities foreclosure opportunities in the $100,000 to $300,000 range in local neighborhoods. CFC has closed lines of credit across a broad geographic area of California and finances distressed residential property acquisitions ranging from condominiums to single family throughout all price ranges.
Two Real Estate Powerhouses Unite to Offer Information, CapitalOctober 17th
San Francisco ChronicleOctober 17th