Brooklyn Condo Conversion – Tranche I
This is a prefunded residential – purchase and rehab opportunity for a Multi-Family Residential property in New York. The subject property address is 695 Monroe Street, Brooklyn, New York.
The borrower is requesting a loan of $1,590,000 in order to purchase and renovate the underlying property. The property was purchased for a total of $890,000 in November of 2015. There is a complete gut rehab needed for the underlying property, totaling $679,250. The borrower will receive 5 draw(s) totaling $1,590,000 over the course of the loan. The initial draw in the amount of $910,750 occurs at close of escrow; $649,700 to purchase property, $261,050 to interest reserve account. The second draw of $272,000 will be disbursed within one business day after close of escrow, to begin renovations. The third draw of $135,000 will be disbursed after verified completion of demo, to be verified by third party vendor. The fourth draw of $172,250 will be disbursed after verified completion of M.E.P., framing, installation of walls, doors, windows, floors, etc., to be verified by third party vendor. The fifth draw of $100,000 will be disbursed after verified completion of entire project, completely renovated and verified by third party vendor. $261,050 (approx. 18 months) in interest reserve will be held by Patch of Land. The borrower plans to sell the individual condos within 18 months.
695 Monroe Street
- Purchase Price: $890,000
- Renovation: $679,250
- After-Rehab Value: $3,000,000
An independent third party appraisal commissioned by Patch of Land, shows an After Repair Value (ARV) of $3,000,000 for 695 Monroe Street. The ARV ratio is 53% 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 Brooklyn is strong and supply and demand are in balance.
695 Monroe Street was built in 1899, located in the suburban neighborhood of Brooklyn, New York. The property has a gross living area of 2,700 sq. ft. on a 2,000 sq. ft. lot. The property will be increased to 4,000 sq. ft. after renovations. The property is walking distance to trendy bars and restaurants, 7-minute walk to train, desirable Bedford-Stuyvesant neighborhood.
695 Monroe Street
Property renovations are awaiting loan to start renovation and there is a complete gut rehab needed for the property. The following renovations are planned to be completed:
- Convert 3-story, 3 unit apartments to 4-story, 4 unit condos
- Interior designer will outfit units with high-end upscale finishes