Perm. Fin. For Strip Ctr: How Much Can We Get?
We are developing a 20,000 SF Strip Ctr. in Rockland Cty, NY. The land was purchased years ago for $200K, but with approvals, it is now appraised at $800K. The soft and hard costs for the project will total $60/SF, so the total actual cost is $1.4MM ($200K + $1,200K). The actual value of the completed, pre-leased project would be $2MM due to the increase value of the land with approvals. Would a construction lender provide us with say 75% of our actual costs (75% of $1.4MM or $1,050M) or 75% of the completed pre-leased value (75% of $2MM or $1.5MM)?
The above message incorrectly refers to Permanent Financing. I had meant Construction Financing.
Actually you can get financing to 85% of cost or completed value.