Working Capital/Cash-out on Three Luxury Single-family Homes
Paradigm Capital, a nation-wide, private commercial real estate bridge lending firm, is pleased to announce that it has funded a $3,500,000.00 2nd mortgage, to provide working capital and a cash out secured by three luxury single family homes in Manhattan, NY, Bridgehampton, NY and Nantucket, MA. The Manhattan property is a 7,000 SF building which is currently undergoing a renovation to return it to its original layout as a single family home. The Nantucket property is a 7,600 SF luxury, single-family home, it is one of 7 historic merchant homes in Nantucket and is one of only four with a double lot (.27 acres). The Property was purchased by our Borrower in 2010 and underwent a $5MM complete historical restoration. The Bridgehampton property is a two story, 8,500 square foot home containing 9 bedroom, 7.5 bathroom on a 1.1 acre lot. The property sits south of the Montauk Highway, just to the West of Kellis Pond, overlooking the paddocks of Campbell Stables. The Property was built in 2013 and extensive renovations to the house and landscape were completed in 2014, 2016, and 2018.
Paradigm’s Borrower had a time-of-the-essence closing on a separate property in Palm Beach, FL. The proceeds of Paradigm’s loan were primarily used to fund a portion of our Borrower’s equity needed for their acquisition.
According to David Kushner, the President of Paradigm Credit Corporation “Our Borrower was in a position where they needed to quickly close on the acquisition of a Property outside of our transaction and wanted to leverage a few of their assets with minimal existing 1st mortgages. Cash-out scenarios aren’t generally transactions we jump at but given the low leverage situation and the strong track record of our Borrowers, Paradigm’s was able to get creative and structure a working capital loan which provided the cash our Borrower needed for their acquisition. We were able to work through our due diligence on three properties in an expeditious manner and satisfied the needs of our Borrower. Paradigm was able to close this transaction in 25 business days. Paradigm’s loan represents 50.5% of the property’s underwritten value.”