New Construction Featured Deal in Franklin Lakes, New Jerset
Kevin Mohollen, one of Asset Based Lending’s Loan Officers for New Jersey, New York and Connecticut, recently funded a land purchase and single-family new construction deal in Franklin Lakes New Jersey. Kevin’s client on this project is one of ABL’s stellar repeat borrowers who has closed 5 new construction projects as well as more than 5 fix and flips with ABL in the last three years.
For this project, this borrower contacted ABL to purchase a parcel of land on which they will construct a 5,000 square foot single family detached home. At the time of the land purchase the seller was taking the necessary steps to subdivide the lot into two buildable lots.
For this ground up construction, the borrower is planning to erect a luxury, two-story, single-family home. The first floor opens into a grand foyer with vaulted ceilings and a double staircase which leads to the main second-floor hallway that looks down onto the open concept kitchen and great room.
The kitchen design details high-end Wolf appliances, a 48-inch stove cooktop, double built-in ovens, and a large island. All the countertops in the kitchen will be quartz and the cabinetry will be custom to round out the kitchen design. The rest of the first floor will have a mudroom and laundry area, separate dining room, a study to the side of the home, and a covered porch to enjoy in the warmer months.
All the bedrooms are planned for the second floor, and each will have its own bathroom attached. The main bedroom will be outfitted with walk in closets, as well as an ensuite bathroom. The bathroom will be tiled throughout, feature double vanities with quartz counters, an enclosed shower, and stand-alone tub. The rest of the bathrooms on the second floor will be custom for each bedroom design.
For the exterior the borrower plans to finish the home with cultured stone. The borrower plans to polish the property off with landscaping to complete the look and give the home excellent curb appeal.
This project required a loan to cover the purchase and the construction of this property. ABL was able to offer 87% LTC based on their level of experience and relationship with Kevin and our lending teams a repeat borrower. The total loan amount for this project rolled up to $1,330,000. While this is a significant sum, based on the appraisal the after repair value of this property is approximately $2,550,000.
The construction amount for this single-family home project totaled $875,000, and the purchase price amounted to $650,000. This borrower specializes in luxury builds in this area of New Jersey and their track records indicates they will complete construction and sell the property within the term length of this loan.
Since this borrower is an experienced investor and has a large network of contacts in the real estate industry, they are already working with an end buyer to sell this property. With an end buyer already in mind the borrower will not have to list the property on the open market once construction is complete, and the borrower can work with their buyer to customize some of the finishes and design choices.
Franklin Lakes is in north Jersey, about 10 miles from the border of Suffern New York. Most properties in this area are single-family homes with between 3 and 5 bedrooms. Franklin Lakes and the surrounding communities are very affluent, and as of Q4 2023 homes sell for a median price of $1,837,000. The area features charming scenery including lakes and lush wooded areas which offer a wide range of outdoor recreational activities.
Prior to joining ABL in 2021, Kevin worked in the financial advisory space with companies like Vanguard and SEI. With an MBA in Accounting and several years working in finance, Kevin is a very savvy LO and enjoys working with experienced developers and flippers throughout the tri-state area.
If you have a similar construction project that needs financing or want to discuss a deal with Kevin, pre-qualify today.