Scenic Bay Bridge Rehab – Phase 1
This is a refinance & rehab opportunity for a 2 family residential conversion in California. The subject property address is 25 Alta St, San Francisco, California. The borrower is a highly experienced developer in the Bay Area.
The borrower purchased the property in November of 2013 for $1,650,000, and contributed a downpayment of $225,000. The remainder of the funds were provided by their current lender and an equity investor. In the past 18 months the borrower has gone through the approval process with city planning, the Historic Preservation Commission, and Telegraph Hill Dwellers. The plans are currently in the final stage of approval. In addition to the downpayment, the borrower has contributed approximately $180,000 in interest payments and $120,000 in soft costs to date.
The borrower is requesting a loan of $2,707,000 in order to refinance, buyout an equity investor, renovate, and contribute to closing costs. There is a complete gut rehab needed, totaling $960,000. The borrower will receive 6 disbursements totaling $2,508,487. The initial draw in the amount of $1,548,487 will occur when the loan closes. The remaining $960,000 will be disbursed in 5 equal draws of $192,000 each as the property is completed. $198,513 (approx. 8 months) of interest reserves will be held by Patch of Land. The borrower plans to sell in one year or under.
The initial investment needed for this property is in the amount of $1,747,000 for the first disbursement and the interest reserves. The combined renovation draws for this project will be raised at a later time as they are requested.
25 Alta St
- Purchase Price: $1,650,000
- Renovation: $960,000
- After-Rehab Value: $3,856,000
An independent third party appraisal, shows an After Repair Value (ARV) of $3,856,000 for 25 Alta St. The ARV ratio is 70.2% and is in line with the data we found during our due diligence process. Our research shows the residential market surrounding the underlying property in this area of San Francisco is strong and demand outweighs supply.
25 Alta St was built in 1895, located in the metropolitan neighborhood of San Francisco, California. The property currently has 1,262 sq. ft. on a 1,200 sq. ft. lot. The property will be increased to 2,334 sq. ft. after renovations. When completed it will include one 1,532 sq ft unit and a second 802 sq ft unit. The property will have 9 rooms including 4 bedrooms and 3.1 bathroom. The property is on the historic Telegraph Hill. It is near The Embarcadero and Fisherman’s Wharf, recreation, and shopping centers.
Property renovations are awaiting loan to begin. There is a complete gut rehab needed for the property. The total renovation cost is $960,000. Please refer to the documents section to view the Construction / Rehab budget.
The borrower has worked on over 100 properties in the past 5 years and is currently on track to renovate and sell 15 additional properties in the Bay Area . He brings over 20 years of land development, home building, and real estate sales experience to the partnership. He has held key Regional and Divisional President positions with major public and private homebuilders, including KB Home, Lennar, Richmond American Homes, and Warmington Residential. His leadership of these divisions led to the entitlement and development of over 8,300 residential lots in Northern and Southern California and the construction of over 6,000 homes.