$858,000 Land Acquisition in Dallas, TX
Terrydale Capital
Feb 1, 2024 3 Min read
Undeveloped land of late has been a significant sore spot for lenders in the market leading many to adopt highly stringent underwriting or avoiding it altogether. As always, it pays to have the right team in your corner to advocate for even the toughest project. Today’s deal spotlight centers on the acquisition of a land asset where our team had to navigate some pressing hurdles in order to close successfully for our client.
What We Were up Against
After garnering the initial appraisal, the value came back significantly lower than previously expected presenting the first hurdle. Undeveloped land poses a challenge in its own right as lenders are far more wary and underwrite with heavy scrutiny. Unfortunately, with only days before approval, the initial lender walked on the deal. This led to delays in the approval timeline with the new lender resulting in more extensions.
How We Met Those Challenges
In order to boost the appraised value and the subsequent loan process, we wrapped an adjacent property that the client already owned into the loan. We were then able to pivot to a new lender that was more favorable to undeveloped land. From here, we managed communication and expectations with all parties involved to stay aligned as we continued to navigate through all moving parts to closing. Ultimately we were able to secure the following terms:
- $858,000 Acquisition
- 65% LTV
- 8.25% Interest Rate
- 10-Year Term
In Conclusion
At Terrydale Capital, our team understands that every deal requires a unique and creative approach. Our team is prepared to analyze every angle of a deal and put our extensive knowledge and networks to use in order to secure the most competitive financing possible. See how we can finance your next commercial real estate project. Call us today.
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Headquartered in Dallas, Texas, Terrydale Capital is a leader in commercial real estate financing. We have close relationships with the nation’s top banks, lenders & family offices allowing us to provide the most competitive financing solutions in the market.
