Location: Yermo, CA
Loan Amount: $2,750,000
Interest Rate: Prime + 5.00%
Term/Amortization: 8-Month / Interest Only
Loan to Cost: 100%
Purpose: Arriba had originally secured a construction to permanent loan for the project, however, the funding was contingent upon receipt of final permits. Due to the delay in the permitting process, and the borrower’s necessity to get started developing the site, the project required interim financing. Arriba was able to showcase its flexibility by bringing in a private investor willing to refinance the maturing land loan and fund the necessary site development. The loan will be funded in two tranches; the first draw will cover all the site development costs and the second will cover the vertical construction, once the final permits are in place. Construction debt was priced interest only at 8.5% and included an 8-month interest reserve.