Mr. Zimmerman;

 

I received your message about equity/bridge loans, and I have a client that
is very strong and is in escrow to purchase a four lot site in Malibu
(southern California) with all the approvals and entitlements, including
infrastructure in place. He is buying the site out of a bankruptcy for $6.4
million, putting $2 million down. He is very strong, and very experienced. I
have done a fair amount of work with him. The lots all have white water
views, and approved bldg. plans, and are three months away from pulling
permits for the first house. You would be lending $5.4 gross, he needs $4.5
net. The construction loan for the first house is around $1.8 - $2.2 and the
houses are all 5,000 - 6,000 S/F in size, and are in the $5.5 million to
$6.5 million range in value. The lot releases are 1.35% of the gross loan
amount, i.e. $1.8 million, so when the third house is finished and sold, you
are paid in full. We have estimated the site as is to be around $8.5 million
easily in value.

 

I was on the site with our Coldwell Banker Previews residential group, and
there is no product available. The agents tell me they have buyers standing
in line for product in this area. They also tell me they could probably line
up the buyers in advance of the construction commencing. 

 

For your information, our division is the advisory and consulting arm of
Coldwell Banker Commercial, we are not in the brokerage side, but provide
all the needed third party reports, feasibility/market studies, valuations &
appraisals, site & property inspection reports. Since we are part of the
largest real estate firm in the nation, we provide these services on a
national level. I have access literally to every office in the country, and
their entire data base, thereby being able to provide local data and
knowledge with our local offices for all types of assignments. 

 

If this is something that you feel you might be interested in looking at,
please send me a reply. 

 

Kjell "Shell" Nelson

President

 

Coldwell Banker Commercial, ASG

Appraisal & Advisory Services Group

 

(310) 937-7700 "direct"

(310) 798-6836 "fax"

 

 

  _____  

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