Vermont Library Transformation Refinance
This is a prefunded refinance & rehab opportunity for a commercial property in Vermont. The subject property address is 48 West Rd, Manchester, Vermont. The property will be transformed into a high-end single family property and will be used as a vacation rental.
The borrower’s previous loan was also with Patch of Land, yet the scope of the rehab was much smaller. With this new loan, the developer has decided to create a high-end vacation rental. So, additional funding will be provided to enhance the appeal and functionality of the property. The budget was originally $164,500 and it has been increased to $584,000. Work on the property in the amount $92,000 was already completed at the time of the refinance.
The developer is requesting a loan of $981,000 in order to renovate and refinance the property. The property was purchased for a total of $425,000 in March of 2015. There is major renovation remaining for the property, totaling $492,000. The borrower will receive 5 draw(s) totaling $909,760 over the course of the loan. The initial draw in the amount of $514,760 was disbursed at closing in order to refinance the property, payoff a mechanic’s lien, and continue renovations. The second draw of $100,000 will be disbursed when 1/4 of the remaining work is completed. The third draw of $100,000 will be disbursed when 1/2 of the remaining work is completed. The fourth draw of $100,000 will be disbursed when 3/4 of the remaining work is completed. The fifth draw of $95,000 will be disbursed when the renovation is completed. The borrower plans to refinance in one year or under.
48 West Rd
- Purchase Price: $425,000
- Renovation: $584,000
- After-Rehab Value: $1,550,000
An independent third party appraisal commissioned by Patch of Land, shows an After Repair Value (ARV) of $1,550,000 for 48 West Rd. The ARV ratio is 63.29% 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 Manchester is stable and supply and demand are in balance.
48 West Rd was originally built in 1897, located in the historic Manchester Village, Vermont. The property was originally built as a library and has continued to operate as such until the present. The property consists of a .49 acre lot and 7,877 square feet of livable area. It is located on a highly visible lot at the intersection of two major roads in the village. The property is near Route 7 and the Ski Resorts of Bromley and Stratton.