Eyzenberg & Company arranged a highly structured 12-month lot development loan with additional CapEx for clubhouse, tax obligations to investors, and existing loan takeout in the Bay Creek Development located in Cape Charles, VA.
Challenges
The client was seeking financing on destination, “for sale,” product in what appeared to be a very tertiary market with retail buyer takeout. Further the client needed the proceeds for horizontal lot work and additional ancillary projects, including clubhouse, golf & tennis facilities, and other improvements. The project sits on a conservation easement thereby requiring Borrower to utilize some of the proceeds to address tax distributions for the investors in the project as it continues to grow and reach completion. Lastly, the client wanted the option to keep additional dollars available and pay a balloon on the loan keeping capacity outstanding, if necessary, with options to extend an additional year.
