Case study - Interim Land Loan
A mortgage broker located in Dartmouth, Nova Scotia, was successful in obtaining the mandate to source mortgage financing on behalf of a regional developer who had acquired a former institutional site consisting of approximately 17 acres.
Since acquisition, the developer was successful in rezoning the site into three separate commercial parcels. These undeveloped lands generated significant interest from local developers, with portions of the lands being subject to conditional sale agreements. The borrower was seeking financing to further develop the lands as per the sale agreements in place.
To assist the borrower in developing the property, C.A.B Realty Finance L.P. provided an interim facility for a term of 12 months. The loan was fully secured by the underlying real property along with full personal guarantees of the principals. The loan is to be repaid upon successful closing of the individual parcels, providing a clear exit strategy for C.A.B. Realty Finance L.P.