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The Challenge
Refinance.
A local real estate company held a vacant lot in a highly-desired neighborhood of a major metropolitan city. Interim plans were being proposed for the development of the lot into a multi-storied mixed-use property. The company had obtained a short-term loan on the property for an unrelated business activity. Although the property did not generate any cash flow in its as-is condition, the company tasked Beplace to replace the existing financing prior to the expiration of the loan term.
The Solution
Finance.
We recognized that land loans are typically suitable for a subset of lenders. Beplace recommended the services of a leading real estate mortgage brokerage firm with respect to the replacement bridge financing, and helped the company contract those services. The company then engaged Beplace to help prepare, complete, and close the transaction.
Beplace used curated lender checklists to collect and organize due diligence document packages for the brokerage firm, which used data and figures in those documents in its final submissions to prospective lenders. We collaborated with the brokerage firm in our analysis and review of third-party reports, and of financial and technical proposals for the planned development of the property. Beplace reviewed lender term sheets with the brokerage firm, and reviewed draft and redlined lender documents with the company's legal team.
The Result
Bridge Financing.
The brokerage firm received a term sheet on behalf of the company - the lender promised a quick transaction with minimal third-party reporting requirements, and so the company signed and executed the lender term sheet. Although the original planned closing was thirty days or less, the lender's legal team delayed the production of draft loan documents. A boilerplate set of loan documents was eventually produced that required extensive corrections and edits, which caused additional delays in the processing of the transaction. Beplace coordinated with the company's legal team to expedite the redlining of the legal documents. We maintained communication with the existing lender and informed them of the progress towards closing. The closing was eventually concluded within sixty days from the execution of the term sheet. The company was able to use our services to refinance a land loan.
* Beplace includes agents, directors, employees, managers, owners, or other stakeholders of Beplace whether individually or through Beplace.
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