Deal of the Week #20 – $16M VTB Assignment Loan – Simcoe County, ON
In July 2024, CSMC successfully committed to a $16,000,000 first mortgage serviced lot loan/VTB assignment loan for a new single-family community in Simcoe County, featuring over 200 single-family lots, all presold to end-users. The purpose of this loan was to refinance the existing mortgage with a Tier 1 Bank, provide an equity take-out (ETO) to the borrower, and supply the working capital needed to complete the remaining site servicing work.
CSMC’s ability to deliver this financing without syndication demonstrates our strong internal funding capabilities. Our deep understanding of VTB assignment loans allowed us to confidently extend significant equity to the borrower, ensuring sufficient cash flow for project completion. The loan also funded approximately $5 million in cost-to-complete servicing work, a full-term interest reserve, fees, and provided the borrower with approximately $7.3 million in equity take-out.
This transaction was expertly managed by Kevin Marthinsen, Senior Director of Mortgage Origination, Jisung Kim, Senior Analyst of Underwriting and Portfolio Management, and Ramyar Satarzadeh, Analyst, Mortgage Investments.
WHY THIS DEAL MATTERS:
✅ This deal exemplifies industry best practices in leveraging Vendor Take-Back (VTB) financing, a critical tool in commercial real estate that offers flexibility in deal structuring and enables the closure of complex transactions.
✅ CSMC’s expertise in VTB assignment loans allowed us to confidently provide a substantial equity take-out, giving the borrower essential cash flow. The fact that we executed this transaction without syndication highlights our robust internal funding capacity, enabling us to offer highly competitive pricing and a streamlined process.
For further information and more commercial real estate financing opportunities, reach out to us at financing@cameronstephens.com
Ontario Brokerage License # 10769
- Kevin Marthinsen, Senior Director Mortgage Origination, Agent Level 2
- Jisung Kim, MSc, MBA, Senior Analyst, Underwriting and Portfolio Management, Agent Level 1
- Ramyar Satarzadeh, Analyst, Mortgage Investments
