Slatt Capital is pleased to announce the arrangement of a $22,530,000 bridge loan on a broken condo residential project in San Francisco, CA. This flexible financing will allow the sponsor to either sell or operate 34 not yet sold units as rentals. The subject property, 950 Tennessee, is a 100-unit condominium project that was completed in August 2020 with a 2-year construction period. The remaining 66 units have been sold since the project completion date. The sponsor doesn't have majority control of the HOA, since their remaining ownership is less than 51% of the total units. This made it challenging for most lenders.
Slatt Capital represented the sponsors in securing a 24-month refinance loan to pay off their construction lender and provide additional time for the remaining units to be sold and/or rented out. Slatt negotiated terms with a no-prepayment penalty structure, partial release, and no minimum interest, which allows the Sponsor the flexibility to pay down the loan with the sale of the units.