Acquisition Loans
A vital part of developing affordable rental and for-sale homes in the competitive Southern California market is the ability to acquire sites quickly and at reasonable prices.
Century provides site acquisition loans to nonprofit and for-profit developers at higher leverage than typically available from other lenders. These loans are used to pay for the acquisition and closing costs of a development site. Century’s site acquisition loans are typically repaid by construction financing.
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Basic Site Acquisition Loan Terms |
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Purpose |
Loan will be used for site purchase and closing costs for the development of affordable homes. |
Structure |
Term loan with possible multifamily fundings. |
Loan Amount |
$250,000 to $15,000,000 |
Term |
6–24 months |
Pricing |
Variable, typically LIBOR plus 400–600 basis points. Loan fees include origination fees, legal documentation fees, and the costs of third party reports. |
Repayment |
Repaid through construction fi nancing. Public agency funds may be used when available. Interest reserves may be funded from the loan proceeds, or be paid directly. |
Security & Collateral |
First Deed of Trust and Assignment of Rents. Full recourse to the development Sponsors. |
Loan-to-Value |
80%–90%. Funds in excess of the acquisition and closing costs may be used for an interest reserve and predevelopment costs. |