High-Rise Condo Development Loan Request

Creighton & Associates has received a development loan request for a high-rise residential condominium building in New York.  The project has direct access to various subway terminals, and will have views of the Manhattan skyline.  The construction loan request is for approximately $60 million.

All project approvals and permits are complete.  The developer actually started construction and the original construction lender stopped funding the construction loan…no surprise in the current economy.  The goal is to take out or resubordinate the existing lender in 2nd position, and resume the construction project.

The initial scenario has been presented to the fund for consideration.  The fund is interested and has capability of handling this loan request.  Currently we have asked for additional information including status of the existing lien, a summary of any current of future pending litigation against the project, a detailed summary of pre-sales and a inquiry whether the developer will “come to the table” with more capital.  We hope to receive some responses to our questions this week.