LOS ANGELES—Private alternative lender Eagle Group Finance has provided a local private investor with $1.4 million in acquisition financing for a half-acre parcel of land near Downtown.
The land, which is fully entitled for multifamily development, has been held in receivership since 2011 when it was foreclosed on by the construction lender. The previous owner defaulted in mid-construction, completing only the underground parking garage.
“This was not your typical land purchase loan because of the existence of the garage,” said Eagle Group President Brian Good. “There were a lot of issues and details to work out in a short amount of time, but we were able to act quickly so the borrower would not lose out on the opportunity to acquire the land.”
The two-year, interest-only financing represented approximately 50% of the acquisition costs with the borrower bringing new equity into the deal. According to Good, the borrower plans to seek bonus density on the entitled land and develop a 60-unit market rate apartment complex.
Eagle Group Finance is an operating unit of Los Angeles-based Eagle Group, LLC, which through its operating units provides short- and long-term financing, capital advisory services and placement of institutional real estate investment capital, third-party loan servicing and property management, and commercial real estate brokerage services.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
