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| THE REAL DEAL: Ralph Avenue Renovation : |
| WHERE: |
Weeksville Ocean Hill section of Brooklyn, NY |
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| WHAT: |
Building with 12 multi-family units and 2 retail stores |
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| PROPERTY TYPE: |
Class C |
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| LENDER: |
Meecorp Capital Markets, a privately-owned commercial real estate
lender and investment banker |
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| FINANCING: |
$500,000 renovation bridge loan |
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| TERMS: |
3-years with interest in the low teens and no prepayment penalty |
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| LTV/LTC: |
60% as-is property: 80% construction |
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| BUILD-OUT/LEASE-UP: |
18 months |
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 Michael Smith, a former Math teacher in the NY public school system, owned a property on Ralph Avenue in Brooklyn and needed construction money to fully renovate the building. The project was the latest (and most ambitious) in a series of successful renovations, but try as he might, he failed to get funding from conventional sources. MEECORP assessed the potential value of the property, took into account the borrower's years of experience and various real estate assets, then approved a $500,000 line of credit. Within 10 months, the developer had completed his renovation and rented the space. He was then eligible to exit into a permanent loan. "Meecorp saved me and put me on the map," Smith explains. "They will always be my first choice." His next project with MEECORP is a 40-unit multi-family building, for which the lender will extend a $1,600,000 line of credit. |
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