StackSource recently closed a refinance and construction loan for a Detroit based real estate investor and business owner that had acquired a vacant mixed use retail and office property in the Grosse Pointe Park neighborhood of Detroit. The investor's plan has been to create a coworking business within the property, however, as COVID hit, the demand for coworking services evaporated so the investor moved his personal business into the property while continuing to build out the coworking business.
StackSource Capital Advisor Chris Peters arranged financing with a regional bank lender that provided two loans. The first loan was used to pay off his existing private lender and was structured as a 5 year term fixed at 3.93% with a 20 year amortization. The second loan is a construction loan that will be used to finish construction on the coworking business and was structured as a 12-month interest only construction loan at Prime + 0.25% and will convert into a 5-year term loan with a 20-year amortization. The lender origination fee across both loans was 0.50%.