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Commercial and Residential
Construction Project Rescue Financing
Excelsion Mortgage is please to offer this very special Construction Project Rescue Financing Program, the CPR Program, in response to current economic conditions. The CPR Program is designed to help restart construction on projects of all types that are:
- Stalled
- In Default
- In Foreclosure, or
- In Bankruptcy.
The CPR Program keeps the current developer in the project. The program is offered through a Fund that lends money on projects that are currently facing difficulty, yet are profitable at some level in the current marketplace. The program retains the existing developer because it is not interested in managing its assets, only in getting them completed and sold.
For complete details on the program, please download this file:
How to Save Your Commercial Construction Project MV.pdf
General Description
We are seeking existing projects of all kinds that are profitable at some price level in today’s market. This is an asset based loan program and the financing is non-recourse financing.
Projects that interest us have the following characteristics:
- Size: Sweetspot of $5,000,000 to $25,000,000. Higher amounts are dealt with on a case by case basis.
- The project is in “distress:”
- Stalled
- Default
- Foreclosure
- Bankruptcy
- The project:
- Has too much debt recorded against it to be profitable in today’s market.
- Was halted due to the lender no longer advancing funds for a variety of reasons.
- Is in some state of partial completion.
- The sponsor is a full-time developer who has a track record of experience his particular asset category.
- This is NOT a Buy and Hold opportunity. Projects MUST be ready to be completed and saleable. See below for financing terms.
At commencement, the developer signs both an Engagement Letter and a Term Sheet so he knows what he will be getting in the way of funding. He also provides a deposit of $7,500 to cover the cost of an independent engineer’s report to verify the accuracy of the completion budgets going forward.
At that point, Excelsion and any brokers step out of the way and the Fund works directly with the developer.
NOTE: The revised cost-to-complete figures that the borrower submits must be restructured to include Excelsion’s fee in the initial draw as a line item of some kind, usually “Consulting.”
The terms of the CPR Program are as follows:
- Term – 3 years with a 1 year extension.
- Amortization – Interest Only, accrued (there is no interest reserve or monthly payment made by the client).
- Points – 3.5
- Rate – 9.5%
- Release Component – Negotiated per transaction.
- Typical closing time – 3 months with existing lenders involved.
To reiterate: This financing can be used on almost any type of:
- Good project in
- Good markets with
- Good developers,
provided it can be shown to be profitable in today’s market:
- Land A&D (lots)
- Residential Tract Developments
- Condominium and Townhome Developments
- Multifamily: Apartment, Mobile Home Park, Assisted Living, etc.
- Commercial: Retail, Office, Medical, Industrial, Warehouse, Hospitality, Resort, etc.
For complete details on the program, please download this file:
How to Save Your Commercial Construction Project MV.pdf
CPR Financing Request Procedures
To see if your project will make a good candidate for the CPR Program, you must send us the following:
- A completed CPR Funding Request spreadsheet (download here - CPR Financing Request.xlsx - requires Excel 2007), or email us at CPR@ExclesionMortgage.com for a copy. The entire process should take you approximately 15 minutes.
- Pay your application fee of $250.00, so please make sure that you have a project that meets our criteria. Call us at 888-578-5441 x81 to discuss your situation.
- We will respond to your submission within two business days.
The spreadsheet contains all of the items necessary for us to do a preliminary evaluation. Upon acceptance, we will contact you for a more complete Due Diligence package.
If your project is currently stalled and has too much debt on it to be profitable in today’s market, then you must contact Excelsion Mortgage today at 888-578-5441 for an opportunity to get it finished.
For complete details on the program, please download this file:
How to Save Your Commercial Construction Project MV.pdf
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