| Transaction: |
Seaside Biloxi, Biloxi, MS |
| Property Type: |
Land for Condo-Hotel |
| Structure: |
Land Loan |
| MF Loan: |
$23,450,000 |
| Date: |
Apr 2006 |
| Broker: |
Housing America Realty |
| Senior Loan: |
N/A - Whole Loan Issued by MF |
| Description: |
MF had previously closed a $9,000,000 land acquisition loan on this project in early 2005. Since then, the developer has increased the project’s condo zoning and had contracted to acquire three adjacent parcels to increase the zoning even more. In addition to increased zoning, the project’s value had also increased due to the special tax benefits available to the property as part of Hurricane Katrina’s Gulf Opportunity Zone Act. However, to take advantage of the Act’s benefits, construction had to commence by a certain time. Recognizing the added value and great opportunity available to its borrower, MF agreed to recapitalize the project with a new loan that would refinance the old debt, acquire the new land, provide interest carry on both this loan and the property’s subordinate debt, and provide a predevelopment reserve to expedite final engineering in preparation for ground breaking. |
