Nichols of Paragon Prime Funding arranges four loans
July 27, 2010 - Brokerage
Paul Nichols, owner and managing member of Paragon Prime Funding, recently arranged four loans totaling $32,559,700.
The first of these included a $5.2 million construction loan as it pertains to the development of a 46-unit market rate/senior apartment complex (phase I) in Schodack. In addition to originating a conventional construction loan, Nichols also arranged a forward takeout for permanent financing. The prime based construction loan was originated at the lesser of 75% of value and 80% of total project costs. The non recourse permanent loan kicks in upon 90% occupancy and a 1.20x debt service coverage ratio.
The second loan originated by Nichols included a $1 million land development loan in North Greenbush. Proceeds of this facility were used to prepare a PAD site for the development of a CVS pharmacy. Nichols was also involved in the financing of an adjacent parcel which was needed in order to release liens/encumbrances associated with the CVS PAD.
The third loan included a $21,719,700 construction-to-permanent loan as it pertains to a 144 unit market rate senior apartment complex in North Greenbush. The loan was insured by the U.S. Department of Housing and Urban Development acting by and through the Federal Housing Commissioner under Section 221 (d) 4 of the National Housing Act. Paragon was instrumental in all aspects of market analysis, due diligence, and structuring.
The fourth and final loan included the refinance of a $4.64 million residential subdivision in Malta. The borrower came to Paragon as their existing lender was applying pressure to exit the loan. Nichols restructured the debt and performed exhaustive market research in getting the loan refinanced.