|DATE OF FUNDING||11/27/13|
|GROSS LOAN AMOUNT||$12,645,021|
|LOAN TO VALUE||65.3%|
|DEBT COVERAGE RATIO||1.10x|
|NET NOTE RATE||8.45%|
|TERM OF INVESTMENT||18 months / 12 month lock-out|
$12,645,021 FOR THE DISCOUNTED PAYOFF OF 3 HOTELS & 2 MULTIFAMILY PROPERTIES | VIRGINIA
The borrowers sought $12,645,021 in first mortgage financing to capitalize a discounted payoff opportunity for a portfolio of three hotels and two apartment buildings located in Norfolk, Portsmouth and Hampton, Virginia. Bank of the Commonwealth was the original lender that financed the loans secured by the portfolio in 2003. On 9/23/11, Bank of the Commonwealth was seized by the FDIC. Subsequently, the FDIC assigned the loans to Southern Bank and Trust Company. The borrowers paid off the $24,423,700 loan to Southern Bank and Trust Company for $13,000,000, which represents a discount of almost 47%. The borrowers contributed approximately $1 million at closing.