Press Release
Mortgage Equicap Arranges $1.63 Million Construction Mezzanine Loan for Townhouse Conversion on Manhattan's Upper West Side
Loan proceeds were used to bond mechanic's liens and replenish the construction lender's interest reserve.
New York, NY - February 22, 2011 - Daniel Hilpert, managing director of Mortgage Equicap, is pleased to announce that the company has arranged a $1,630,000 construction mezzanine loan for a townhouse conversion near Central Park in New York, NY.
Challenge: The construction lender stopped funding due to several mechanic's liens. At the same time the construction loan had matured and the developer needed funds to replenish the interest reserve.
Solution: Mortgage Equicap arranged a 24-month construction mezzanine loan structured as third mortgage behind the construction lender's first and second mortgage. The mezzanine loan provided the necessary funds to bond the mechanic's liens and replenish the construction lender's interest reserve.
"Mortgage Equicap acted swiftly and procured a mezzanine lender that has worked with the senior lender before, making the negotiation of the inter-creditor agreement more effective", said the borrower. Mr. Hilpert added, "we've seen several lenders re-entering the construction lending market. Traditionally, it is very difficult to find a construction mezzanine lender to step in and provide the funds to complete a stalled project."
