Hard money loan for luxury new construction project in Old Brookville, NY
Today’s deal comes from Nik Gak, who closed this hard money new construction loan in Old Brookville, NY. The property was purchased for $1,400,000 with a construction budget of $1,506,000 and total loan funded at 83% LTC. The borrower is a first-time borrower with ABL and an experienced real estate investor.The borrower is a part-time real estate investor and restaurant owner that began to work with luxury new builds in the last few years, wanting to repeat their success in Old Brookville. With an estimated ARV of $4 million and high likelihood of selling before completion, this project is already looking good. “The Covid-driven exodus from the metro area to the suburbs will likely continue to persist the next few years,” says Nik. “With interest already pouring in from prosperous individuals, this property will likely sell before it even hits the market.”
The proposed build is a single-family 5-bedroom, 8-bathroom measured at 7,300 square feet. The build will be luxury in scope with the exterior highlighted by stone cladding façade, slate or cedar roof, and black trim windows. Interior will be highlighted by 10-foot-high ceilings, vaulted foyer, white oak and walnut floors, and classic farmhouse moldings. Kitchen will feature double dishwasher, double wall oven, wet bar, and high-end appliances. Each bedroom will feature its own bathroom and walk-in-closet, with three separate bathrooms throughout the home. Build time is expected to take up to 11 months with final sale expected before project completion.
Old Brookville isn’t a town that many people have heard of, but real estate afficionados and wealthy socialites are quite familiar with it. This intimate town filled with luxury properties is usually under the radar but highly desired by homeowners that fit the area’s income bracket. “Old Brookville is one of the most sought-after communities on Long Island,” says Nik. “Vacant parcels are extremely rare, so this borrower is going to make a pretty penny with this new build.” Homes are spending an average of 116 days on market, which sounds unusually high given the hot markets throughout Long Island, but its balanced out by being a private, affluent area so activity will always be reduced. The average home price for the area reached $1.85 million which is a 36% increase from the previous year. Currently homes are selling for an average of $441 per square foot, which is a 54% year over year increase.
Nik covers the state of New York and other northeast markets, bringing a passion for real estate and top-notch professionalism to real estate investors in the area. If you’re looking to finance your rental property, fix and flip, or new construction project, then contact Nik today at 201-942-9089 or email ng@abl1.net.