Jewel Capital successfully negotiated a two-year construction loan with a private lender in the amount of $1,500,000 to be secured by a development site located at 150-30 12th Avenue, Whitestone. The purpose of the loan was to finance the development of the mixed-use project. The total project cost was $2,989,500, and the LTC was at 50.18%.
Outstanding Loan Terms: Jewel Capital aggressively negotiated the loan terms with lenders and successfully closed the loan at the interest rate of 9.00%. This rate was considered as the lowest level for a similar construction loan in the marketplace (average rate ranges from 10.00% to 13.00%). In addition, Jewel Capital negotiated the first drawdown amount to $600,000 and reduced the number of drawdowns to only 3.
The Property is a 6,375-SF development site in Flushing, NY, on which the borrower planned to develop a 3-story mixed-use building. The new mixed-use building will have a gross area of 8,728-SF and consist four units - one residential, two commercial and one community facility unit. The project is expected to be completed in Spring, 2018.
The borrower is one of our repeat customers and he has been involved in the real estate industry for more than 20 years. Originally, he co-founded and ran a few NYC Chinese real estate magazines in the late 90s. Starting in early 2000s, he began to invest and develop real estate properties mostly in Queens and Brooklyn. In recent years, his development projects were mainly concentrated in popular neighborhoods such as Long Island City, Flushing and Sunset Park.
The property is located in the Whitestone community, which is an upper middle-class residential neighborhood in the northernmost part of the New York borough of Queens. The Whitestone is located between the East River to the north and 25th Avenue to the south. This neighborhood has a long history of Chinese immigrants. The Chinese American population is gradually increasing and thus boosts the real estate development around this area. This property is also perfectly designed to meet the increasing developments needs in the great Flushing area.
JEWEL CAPITAL is a fast-growing commercial real estate capital advisory firm based in New York City. We are specialized in structuring and placing debt, mezzanine and equity financing in Northeast region. Our most competitive advantage is to provide our clients with tailored, best-in-class financing solutions.