The subject loan is a refinance and construction loan for 16 condominium townhomes currently under construction in the Ravenna neighborhood of Seattle, Washington. The loan amount is $10,953,433 and the appraised as-completed value is approximately $16,851,435 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 65% complete with foundation poured, structures framed and wrapped, and plumbing and electrical is currently underway. At completion, the property will consist of four units with two bedrooms and twelve units with three bedrooms, and will feature a secure underground parking garage with individual doors for each unit. The average unit size is 1,704 square feet.
The subject project is located in the desirable Ravenna neighborhood, which provides urban living with a suburban feel. The property is proximate to Ravenna Park and Greenlake and is walkable to grocery stores and restaurants. The area also has highly rated schools and is located just seven miles from downtown Seattle, with easy access to I-5. According to market data from Redfin, a real estate brokerage, luxury properties recently delivered in the Seattle market have sold quickly, as measured by the ‘days on market’ metric, which has dropped from 14 days to eight days. 45% of homes have sold above their list price.
The borrower is a respected urban developer and homebuilder with nearly 20 years of experience and over 135 employees. The guarantors have a high personal net worth and strong credit scores. They are repeat Broadmark borrowers.