$2.34M Bridge to Sale: Renovated Luxury Residence in Norwalk

The Borrower's Problem

The owner needed to retire a defaulted, maturing $1.67 million purchase loan. Approximately $1.6 million had recently been spent on property improvements, but the residence was vacant and had not yet sold. Credit challenges complicated refinancing before the planned sale.

The Helvetica Solution

Helvetica structured a $2,340,000 bridge secured by a first mortgage on the residence. The 18-month interest-only term aligned financing with the sale plan. A $370,875 interest-reserve holdback was included to cover the scheduled 18-month interest period while the vacant property was marketed.

The brochure reports 55% LTV. Its cover lists a $4,250,000 market value, while the narrative cites a $4,200,000 appraisal. These are historical figures reported in the brochure, not a current valuation. The property was listed at $4.49 million, with repayment planned from sale proceeds.

Benefit to the Borrower

• Refinancing addressed the defaulted $1.67 million purchase loan before the sale.
• An 18-month term provided a defined marketing window for the renovated residence.
• The $370,875 reserve supported interest payments while the property was vacant.
• The sale plan preserved time to market approximately $1.6 million of recent improvements.

Deal Highlights

• $2,340,000 refinance and cash-out bridge; first-mortgage security
• 18-month interest-only term; 55% reported LTV
• 9,608 SF residence built in 1932, with 7 bedrooms and 9 bathrooms
• 60,984 SF site, approximately 1.4 acres, in a gated coastal community
• Pool, spa, pool house, elevator, and terraces with Long Island Sound views
• Vacant and listed for sale at $4.49 million at the time of the transaction
• Planned exit: repay the bridge from sale proceeds