High Yield Loan Origination
Connecticut Office Loan: Through a direct relationship, Revere Capital originated a 12 month, $1,250,000, 1st mortgage loan with joint and severable personal recourse to four guarantors with a collective net worth over $20M. The loan was collateralized by a well located office building in Fairfield County, CT. Revere Capital originated and closed the high yield loan in 5 days enabling the borrower to purchase the building out of foreclosure. The loan’s investment basis was $19.25 per foot.
Multi-Unit Residential Loan: Through a proprietary relationship, Revere Capital originated a 12 month, $1,800,000, 1st lien mortgage loan with personal recourse to a Borrower with a net worth of over $5M. The $1,800,000 loan was collateralized by condominium units, retail and a below ground parking garage. The use of proceeds was for the interior finish-out of the remaining condo units in a historic building in Maine; the building was bought out of foreclosure by the borrower prior to Revere Capital originating the loan. The Borrower had 22 years of construction and condominium development experience and had relocated to the area to ensure a timely and quality execution. Revere Capital’s loan basis is $65,000 per condominium unit with the prior sales ranging from $250,000 to $500,000 per unit. The $65,000 per unit basis assumes no value for the parking garage and the ground floor retail space which was approximately 60% leased at origination.
Non-Performing Loan Acquisition
Apartment Loan Acquisition: Revere Capital purchased a non-performing 1st mortgage loan from a regional bank on a 93% occupied apartment building in southern Florida for $3,500,000. The investment was fully underwritten, toured and consummated in seven days. Revere Capital was able to purchase the note, work the investment to resolution and achieve a 77% IRR return on invested capital.
Mixed Use Loan Acquisition: Revere Capital purchased an approximate $800,000 non-performing 1st mortgage on a mixed use asset in Stamford, CT for $556,000. Revere Capital negotiated a back payment on the mortgage from the owner and a “friendly foreclosure” in-order to extinguish the second lien on the property. Upon taking title to the property in approximately 90 days, Revere Capital self-managed the building, increased occupancy and placed the building on the market for sale. Revere Capital subsequently sold the property in approximately eight months from note acquisition and yielded an IRR in excess of 20% on its investment.
Real Estate Owned (“REO”) acquisitions
Multi-family Apartment complex: Revere Capital acquired, with a local property management company, a 304 Unit REO apartment building for $2,900,000. Upon purchase, Revere Capital invested $1,000,000 in improvements to the property and was able to increase occupancy 41% in 7 months due to the improvements and active hands-on management. The investment is currently providing an annualized yield in excess of 12% and has returned 15% of invested capital in 16 months. The investment is expected to return in excess of a 20% IRR to investors.