Acquisition Financing on a Luxury Single Family Home in Southampton, NY
Paradigm Capital, a nation-wide, private commercial real estate bridge lending firm, is pleased to announce that it has funded a $1,125,000.00 1st mortgage, for the acquisition of a 2,900 SF SFH just south of the Little Peconic Bay in Southampton, NY. Our Borrower is purchasing the home for $999K, well below its appraised value of $1.6MM. Paradigm’s loan is additionally secured by a pledge of 50% interest in a retail cooperative in the East Village neighborhood of Manhattan. The cooperative is tenanted by a restaurant, who has been in the space since 2007 and recently executed a 5 year lease extension. The retail cooperative was appraised for $2.8MM.
Paradigm’s Borrower plans to inject a significant amount of capital, out of pocket, toward major renovations on the Southampton property, including a new roof, a complete remodel of the kitchen and bathrooms, as well as other aesthetic items. Our Borrower is a contractor by trade and has represented that these improvements to the property will be completed at a cost significantly below market rate.
According to David Kushner, the President of Paradigm Credit Corporation “We had be extremely flexible when progressing toward closing this loan. Our Borrower was receiving pressure from the seller to close quickly, which was in everyone’s best interest, given that our Borrower wanted to at least commence, if not finish renovation to the Property, prior to the height of the summer season. Due to Paradigm’s willingness to work with our Borrowers, we were able to work through our due diligence in an expeditious manner and satisfied the needs of our Borrower and the seller of the Property. Paradigm was able to close this transaction in 21 business days. Paradigm’s loan represents 37.5% of the properties’ underwritten value.”