Confidential · For intended recipients only
A $2.02MM day-one acquisition advance, a $1.0MM prepaid interest reserve escrowed at close, and $8.34MM of construction draws — 100% of the build budget. Sponsor equity of $2.44MM funds in full at closing.
| Loan terms — per term sheet | Detail |
|---|---|
| Total loan amount | $11,354,720 |
| Interest rate | 9.00% fixed · interest-only |
| Term | 24 months |
| Day-1 acquisition advance | $2,017,600 |
| Construction draws — 100% of budget | $8,337,120 |
| Prepaid interest reserve (non-Dutch) | $1,000,000 |
| Loan fees — 1.25% + 1.25% + processing | $285,968 |
| Cash sweep at sale closings | 80% |
| Leverage & coverage | Detail |
|---|---|
| LTC — loan / total cost incl. reserve & fees | 81.9% |
| LTV at $16.915MM model sellout | 67.1% |
| LTV at $16.0MM term-sheet appraisal basis | 71.0% |
| Min. appraisal supporting loan at 70.21% | $16,172,511 |
| Levered breakeven sale price — all-in | $863.43/SF |
| Rent coverage of IO — months 1–6 | 1.06x |
| Reserve headroom after months 7–24 interest | $61,133 |
| Sponsor cash equity at close | $2,435,819 |
| Sources | At close | Mos 1–24 | Total |
|---|---|---|---|
| Day-1 acquisition advance | $2,017,600 | — | $2,017,600 |
| Prepaid interest reserve | $1,000,000 | — | $1,000,000 |
| Construction draws (mos 7–24) | — | $8,337,120 | $8,337,120 |
| Sponsor equity — cash at close | $2,435,819 | — | $2,435,819 |
| Total sources | $5,453,419 | $8,337,120 | $13,790,539 |
| Uses | Total |
|---|---|
| Land purchase — 3 parcels under contract | $4,080,000 |
| Mortgage doc stamps & intangible tax | $62,451 |
| Legal | $25,000 |
| Loan fees (orig + broker + processing) | $285,968 |
| Interest reserve — escrowed at close | $1,000,000 |
| Soft costs | $1,204,200 |
| Hard costs — $375/SF vertical | $6,375,000 |
| Contingency — 10% of hard + soft | $757,920 |
| Total uses | $13,790,539 |
19,575 SF of assembled fee-simple land with 145 feet of water frontage in Colee Hammock. Twelve existing units across three 4-plexes produce $24,000/mo of gross rent — 1.06x the $22,632 monthly IO — through the six-month pre-construction hold.
Appraisals: Taylor Made Appraisals (FL Cert Res RD2881) for CrossCountry Mortgage, effective 05/26/2026 — Form 1025 reports on each parcel.
Explore the competitive set. Closed luxury-townhome sales in the Las Olas corridor run $603–$651/SF for dry lots and $746–$870/SF for waterfront with dockage. The all-in levered breakeven on this project is $863.43/SF — the $995/SF sellout is the upside case, not the repayment case.
| Comparable | Product | Closed | Price | SF | $/SF |
|---|---|---|---|---|---|
| 12 SE 10th Ave — The Beverly | 2023 TH · 3BR · elevator + pool · dry | Mar 2026 | $1,975,000 | 3,033 | $651 |
| 15 SE 11th Ave — The Beverly | 2023 TH · 3BR · dry | May 2026 | $1,879,000 | 3,114 | $603 |
| 808 NE 2nd St — 8hundred North | 2024 new construction · rooftop · dry | Sep 2025 | $1,600,000 | 2,639 | $606 |
| 144 Isle of Venice Dr | Waterfront TH · deeded dockage · 4 DOM, cash | Apr 2026 | $2,800,000 | 3,217 | $870 |
| 101 Isle of Venice Dr | Waterfront TH · 50-ft slip | Sep 2025 | $2,395,000 | 3,212 | $746 |
| 817 NE 17th Way — Victoria Park | 2018 TH · plunge pool · dry | Mar 2026 | $1,310,000 | 2,548 | $514 |
| Regency Park — 809 NE 16th Ave | Pre-construction · Kobi Karp · 2027 delivery | Active | $1.9–2.4MM ask | 2,930–3,077 | $650–780 |
Closed sales verified against Beaches MLS records and Broward County folios, June 2026. Sale prices and living square footage as recorded; $/SF on air-conditioned area.
Stofft Cooney Architects concept: five three-story, 3BR luxury townhomes totaling 17,000 saleable SF. Demolition in month 7, vertical construction months 7–24, certificate of occupancy June 2028.
| Development budget | Total | Per unit |
|---|---|---|
| Acquisition / land + closing | $4,453,419 | $890,684 |
| Soft costs — arch, eng, permits, impact, GC fee | $1,204,200 | $240,840 |
| Hard costs — vertical construction | $6,375,000 | $1,275,000 |
| Contingency — 10% of hard + soft | $757,920 | $151,584 |
| Interest reserve + loan fees | $1,074,659 | $214,932 |
| Total project cost | $13,865,198 | $2,773,040 |
Cost basis $832/SF all-in against a $995/SF ask and an $863/SF levered breakeven. Sale expense modeled at 5%.
Net sale proceeds against the $11.35MM payoff, recomputed live. The model's sensitivity grid runs the same math from $945 to $1,045/SF and against sales delays of up to four months past maturity.
Delay tolerance: extension carry runs $94,460/month past maturity (9% on the full balance plus taxes and insurance) — a four-month delay at $945/SF still returns $939,510 of levered profit above full repayment, per the model's delay grid.
Twelve in-place units across the three 4-plexes carry $24,000/mo of gross rent against $22,632 of IO through the six-month pre-construction hold.
Non-Dutch reserve covers the full $938,867 of months-7–24 interest with $61,133 of headroom — debt service never depends on sales pace.
The all-in levered breakeven sits 13.2% below the ask — and inside the closed waterfront comp band of $746–$870/SF.
30% deposits on all five homes by month 19 fund property taxes and insurance from escrow — $223,200 of carry the sponsor never touches.
Three May-2026 appraisals total $4.05MM against a $4.08MM contract — the land basis carries no goodwill premium into the loan.
An 80% cash sweep at each townhome closing pays the loan down unit by unit; a $16.17MM appraisal supports the full loan at a 70.21% advance.
Real estate entrepreneur and developer with $150MM+ of luxury construction and development across South Florida — built on relationships, execution, and long-term value. Recent sales include Palazzo Corallino, a $13.9MM Coral Ridge waterfront estate, and the $12.25MM Enclave at Golden Harbour in Boca Raton.
Rooted in generations of builders, Frank leads ARC's tech-forward construction platform. The portfolio runs from the $89MM, 354-unit Edge Avenue G in Bayonne (NJBIZ Top Project) to the $500MM Resorts World Catskills — and ARC is on site today as a JV partner on the $2.2B New Highmark Stadium for the Buffalo Bills.
$11.35MM at 81.9% LTC on assembled waterfront land in Colee Hammock — income-covered from day one, reserve-covered through delivery, repaid at a price below the closed waterfront comps. Full model and diligence file on request.
