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New Construction

Riverside, CT New Construction

Lima One financed a $2.7 million tear-down/rebuild construction project in Riverside, Connecticut.

By the Numbers:

$2,741,500

Loan Amount

$1,280,000

Purchase Price

$1,845,500

Construction Budget

87.7%

Loan-to-Cost Leverage

$3,900,000

Appraised After-Repair Value

70.3%

Loan-to-After-Repair-Value Leverage

The Opportunity

An experienced builder found a property in Riverside, Connecticut, that was an ideal candidate for a tear-down/rebuild project. Riverside, located between Stamford and Greenwich, has some of the nation’s best schools and offers easy access to New York City.

The builder asked his broker to help him find the best construction financing for this infill project based on rate, leverage, and his preferred 24-month term. He needed to refinance the desirable property and get funds to proceed with construction.

The Solution

Lima One provided a $2,741,500 ground-up loan that financed 100% of the $1,845,500 construction budget while financing 87.7% of the overall project cost. The loan’s low interest rate credited the builder for his significant experience, while providing additional savings because it included no interest charged on undrawn construction funds.

The builder now has 24 months of interest-only financing to complete this tear-down/rebuild project. Lima One’s premier new construction loan will enable the investor to take advantage of the $3.9 million appraised after-construction value, which offers the potential of more than $750K in profit once the build is complete.