Unique properties often require tailored financing solutions. Recently, a seasoned investor and repeat client of CV3 Financial Services embarked on an ambitious project in Los Angeles, involving Frank Sinatra and a distinctive property with complex financing needs.
It was initially listed for $7,995,000 under one purchase contract with two properties – main house and the guest house. The lot that the guest house sits on is approved for 11 parcels and sits on 9+ acres. The investor (our borrower) wanted to have it split into two purchase contracts with the ability to build on the second one if he chooses to explore the opportunity for future development.
- Dual-Purpose Acquisition: The investor aimed to utilize the Sinatra House for media production while exploring the development potential of the adjacent parcel.
- Complex Purchase Agreement: Initially, both properties were under a single purchase contract, necessitating its division into two separate agreements that a lender would then have to find a way to finance
- Strategic Financing Needs: Given the investor’s plans and the properties’ distinct characteristics, a customized financing solution was essential.
CV3’s Tailored Financing Solution
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Property One: The Sinatra House |
Property Two: The Adjacent Property |
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Loan Type: Bridge – Purchase Loan Amount: $3,500,000 Purpose: Facilitate the acquisition of the property for immediate use in media production, leveraging its established reputation to generate revenue and refinance after 2 years into a long-term loan. Account Executive: Ben Shaevitz |
Loan Type: Bridge – Purchase Loan Amount: $2,714,000 Purpose: Secure the parcel with the intent to subdivide and develop the 11 approved residential lots, capitalizing on the growing demand for housing in the Los Angeles Valley. Account Executive: Ben Shaevitz |
- Customized Loan Structuring: By splitting the original purchase contract into two distinct agreements, CV3 provided two jumbo loan solutions tailored to the specific needs and potential of each property.
- Efficient Processing: Leveraging their deep understanding of the investor’s business model, we were able to close the loan in just a few weeks with minimal paperwork, allowing the investor to acquire the property without delay.
- Strategic Positioning: The financing enabled the investor to immediately monetize the Sinatra House through media production rentals while laying the groundwork for a lucrative residential development on the adjacent parcel.
At CV3 Financial Services, we pride ourselves on delivering innovative financing solutions that align with our clients’ unique visions and objectives. This project exemplifies our commitment to supporting investors in navigating complex transactions and unlocking the full potential of their real estate endeavors.
