$2,260,000 Construction Loan in Phoenix, Ariz. Is 16th New Loan for Repeat Borrower
March 21, 2021
Freedom Financial Funds, LLC, through its subsidiary Freedom REIT, recently closed its 16th loan with a Phoenix-based developer. The $2,260,000 loan provides 89% of cost financing for renovation and tenant improvements to an existing restaurant building in Central Phoenix.
Construction loan
$2.26M
Retail, Phoenix, AZ
- Loan amount
- $2,260,000
- Purpose
- Renovation and tenant improvements to an existing restaurant building in Central Phoenix
- Leverage
- 89% of cost
- Rate
- 7.99% during construction, stepping down to 6.49% once cash flow is above breakeven
- Relationship
- 16th loan with a Phoenix-based developer
- Lender
- Freedom REIT
Due to the excellent track record of the developer, the well-located real estate, the solid operating history of the tenant and a profitable business plan, Freedom was able to structure 89% financing at a rate of 7.99% during construction. When above-breakeven cash flow is attained, the rate will step down to just 6.49%. This structure has not only allowed the developer to capitalize the project without a joint-venture partner but rewards the lower risk associated with the asset once the tenant has moved in and is paying rent.
The developer continues to make Freedom his first source for capital because he can count on the service before and after each loan is closed. This allows him more time to find new and profitable opportunities, rather than spending time resolving issues surrounding his capital needs.
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