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| Tuesday, October 7, 2008 |
| Borrower | A special-purpose entity created for the transaction | |
| Loan | a $4 million, three year loan at 12% in the first year, 15% in the second and 18% in the third year. | |
| Collateral | The loan is secured by a first mortgage on 56 condominium units and two pad sites in the new "Parkway Palms Resort Maingate Condominiums," which is a former Hilton hotel in Kissimmee, Florida. 24 of these units have been sold under contracts which will not close until after the Closing. | |
| Guarantors | The principals of the borrower | |
| Purpose | The loan (together with sales proceeds of 100 units) will fund the $14.5 million purchase price. The units are sold to investors who might spend a week each year visiting the Orlando entertainments. In their absence the units are rented out as hotel rooms. The market for this investment is very strong. | |
| Exit strategy | The borrowers planned to repay the loan from the proceeds of sales of condominium units. | |
| Outcome | The loan was repaid within five months, and the developers have done very well out of the deal. |
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