Investment Banker Announces Closing of $20.6 Million Deal
There are so few large commercial construction loans that are closing nowadays that a recent closing of a $20.6 million apartment construction loan actually warrants a mention in our blog.
The loan was closed by a large regional bank. The project was a planned 125-unit apartment complex in Studio City, California. The project will be a mix of one-, two- and three-bedroom market rate apartments. Onsite amenities include a swimming pool and sun deck, tennis courts, and a clubhouse.
The construction loan, which represents 72 percent of the total development cost carries an interest rate of Libor + 2.75% with no floor, so the current interest rate is approximately 3.0%.
The mortgage banker that originated this loan sent an announcement of the closing to thousands of real estate brokers and finance executives. Such a closing announcement is called a tombstone. The typical tombstone will contain the contact information of the mortgage company originating the deal, in hopes of generating more leads.
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