Attached homes in Bremerton, WA
The subject loan is for the vertical construction of eight single-family, attached homes in Bremerton, WA. The loan amount is $1,670,500. The appraised as-completed value is $2,570,000 with a loan to value ratio (LTV) of 65.0%. Consistent with Broadmark Realty’s lending practices, the entire loan amount is not released at closing. Funds are disbursed as construction draws as the project progresses. We believe Broadmark Realty’s draw process is detailed and includes third party inspections and lien releases through each stage of construction before additional funds are disbursed.
The subject project is phase 3 of a multi-phase project of 65 units. Phase 3 consists of four buildings of two attached units. Each unit will be between 1,350 and 1,880 square feet. The average sales price is approximately $334,000 per unit, well below the median sales price for the area of $446,200. All units in phases 1, 2 and 3 have been presold.
The subject property is located on the Kitsap peninsula in unincorporated Kitsap County, 8.0 miles north of the heart of downtown Bremerton, WA and 3.5 miles east of downtown Silverdale, WA. Predominant area employers include the Naval Shipyard and the Bangor Submarine Base, along with local government and medical institutions. Residents of the area can take advantage of the Washington State Ferry leaving from Bremerton which offers a one hour commute without traffic to downtown Seattle. The city of Silverdale is home to the Kitsap Mall, a popular entertainment and shopping amenity for residents of the peninsula.
The borrowers are an experienced team with over 38 years of experience in construction, real estate sales and development. They have built over 3,000 single family dwellings in multiple communities, nearly 1,500 multi-family dwelling units, and tens of thousands of square feet of commercial property. They are previous clients of the legacy Broadmark funds and have repaid approximately $20.5M.