When your plans hit a roadblock, an experienced and knowledgeable partner can get you back on track. This first-time developer saw an opportunity to turn his café into a reliable retirement income – and we wanted to help make it happen.
After owning and running one of Bondi Beach’s favourite local cafés for the past 22 years, this developer knew his site was the ideal location for apartment living – and the rent would provide him and his wife with a consistent retirement income. But with little experience in development, he ran into some significant barriers.
Read on to learn more about the recent construction of mixed-use development in Sydney’s Bondi Beach.
The details of the deal
Location
Bondi Beach, NSW
Loan amount
$4.7 million
Term
18 months
LVR
62%
Purpose
Construction of mixed used development of 7 apartments and 1 retail unit
Product
Construction finance
Type of development
Mixed-use residential and commercial property
Exit strategy
Refinance with major bank and lease dwellings on completion
The Assetline Capital difference is the care and the follow up. It’s so much more than funding. It’s like family. All that work behind the scenes, no bank would ever do that for you.”
Reuven Savitt, Developer
After demolishing the site, and his income with it to meet DA requirements, the developer’s broker told him the bank wouldn’t fund the project. With no builder, construction certificate or finance, he had just a few weeks to submit contracts for the DA.
At Assetline Capital, we saw the project’s potential immediately and knew our speed, experience and expertise could help him build something truly iconic – and put him back in control of his future.
Set in the heart of Bondi’s dining precinct and minutes from Bondi Beach, the plan for seven luxury apartments and a ground floor retail space made perfect sense. And the owner’s significant equity in the property provided a good buffer. Following a robust due diligence review, we arranged capital quickly to keep the project moving ahead.
We then used our years of experience in the property industry to help the developer navigate potential hurdles throughout the build. We worked with the architect to re-engineer the building for a more premium product, with faster and more cost-effective construction – saving over $1 million on building costs. We also helped source the right builder, negotiate site access with neighbours, and ensure the project met all OC requirements.
Construction began in February and the first tenant moved into the property in October. With all seven apartments and ground floor retail space now leased, the owner is now realising some of Bondi’s highest rents for this type of property. And after a lifetime of hard work, he and his wife can now enjoy a comfortable retirement.
If you’d like to discuss a construction, bridging or long-term loan scenario with us, please get in touch with our team.
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