A prominent commercial real estate platform has closed a $2.9 million loan in the Bakken oil field area of North Dakota.
Money360 said today they funded and closed the loan with a borrower in Williston, North Dakota. The one-year loan was made to an experienced developer of oil services accommodations, and will be devoted toward the acquisition of an 18-acre parcel upon which 550-unit apartment building will be built.
The loan amount is roughly one quarter of the collateral, which includes a 334-room motel and two lots totaling 48 acres upon which additional motels are being constructed. Monthly cash flow is several times the amount required to make the monthly interest payments on the loan, according to a release.
The borrower owns three properties in the Williston area and one in nearby Culbertson, Montana which combine to offer close to 600 rooms.
“Although this commercial loan in North Dakota is an unusual example of the kind of loans that Money360 typically funds, it definitely demonstrates the type of flexible, custom-tailored financing that Money360 can provide to help meet a borrower’s specific needs.” said Dan Vetter, President and co-founder of Money360.
The short term of the loan provides valuable investor protection against a sector of the oil industry which is especially vulnerable to OPEC-initiated price drops designed to hold market share by weeding out pricier producers in shale and tar sands regions.
Learn more about Money360: