Purpose

The loan will be used for site purchase and closing costs for the development of affordable rental and for-sale homes, including condominiums and townhomes.

Structure

Site acquisition loans are normally structured as term loans. A loan may be structured as a revolving line of credit for site assembly of multiphase developments.

Loan Amount

Loans may range between $250,000 and $15,000,000.

Term

6 to 24 months

Pricing

Interest rates will be negotiated between the Borrower/Sponsor and Century. Market conditions and overall risk of repayment will determine the loan interest rate, which may be fixed or variable based on an index rate (typically LIBOR). Loan fees include origination fees (typically 1.5–2.0%), legal documentation fees, and the costs of third party reports (appraisal, environmental, etc.).

Repayment

Site acquisition loans are normally repaid through construction financing. Public agency funds may be used, when available. Interest reserves may be funded from the loan proceeds, or interest may be paid directly by the Borrower/Sponsor.

Security & Collateral

Site acquisition loans are secured against development sites, through a recorded Deed of Trust and Assignment of Rents. Loans may also be recourse to the development Sponsors. Other collateral, including additional real estate, may be required.

Loan-to-Value

Century will finance 80–90% of the purchase cost or property value. The funds in excess of the acquisition and closing costs may be used for an interest reserve and predevelopment costs.