Deal Highlights
Loan Amount: $1,087,000
Loan Type: Purchase with Construction Holdback
LTV: 75% with $250,000 holdback for ADU construction
Term: 12 months
Lien Type: 1st lien
Property Type: 6-Unit Multifamily Property
ABOUT THIS DEAL
SDC CAPITAL recently funded $1,087,000 for the purchase of a 6-unit multifamily property located in East Los Angeles, California. The loan was structured at 75% loan-to-value, along with a $250,000 holdback to support the construction of additional ADUs on the property, and secured by a first lien.
This transaction presented a strong value-add opportunity, allowing the borrower to expand the existing asset and increase its income potential. By incorporating ADU construction into the business plan, the borrower aims to maximize the property's footprint and overall rental yield.
With a 12-month bridge loan in place, the borrower has the flexibility to complete construction and stabilize the property. Upon completion, the strategy is to refinance into long-term financing, capturing the increased value created through the improvements.
Have a property that needs funding? Email info@sdccap.com or call 424-304-1072 to get started.