Cache Private Capital Diversified Fund (CPC Diversified Fund) managed by CPC Management (CPC) ended the second quarter of 2015 by closing a loan for Panguitch Lake Resort in its home state of Utah. The loan was funded in time to avoid a pending foreclosure sale and enabled the resort to collect millions of dollars in discounts negotiated by CPC with the lender. —
In 2007, the current resort owner used proceeds from the sale of her aggregate and cement company to purchase the struggling lake-side resort located on one of the top ten fishing lakes in the country. A cabin where the owner’s grandmother was raised still stands prominently in the middle of the 18-acre, 255-lot development and was a driving force to attracting her to the project. With over $4M in cash and $7M in total capital, she took the property from a restaurant on a grassy swath, to a partially-improved Planned Unit Development (PUD) that boasts 20 existing cabins for nightly rental, dozens of improved RV pads, a 35-slip marina, state-of-the-art sewage and water systems, and several other recreational amenities. After the prior lender advanced approximately $7.5M, the resort owner was able to pay the loan balance down to less than $5M, but the lender still required a full payoff to release any collateral and stay the imminent foreclosure proceedings. With little time, a loan was sought from CPC Diversified Fund utilizing the resort property along with a ranch and leased rock pit in Arizona as collateral. This loan has appeased the prior debt obligations at a meaningful discount and a structure was created that will allow partial release of collateral upon lot sales where the borrower can now succeed.
Between the operator’s extensive management discipline, commitment to the project, and tremendous “skin in the game,” CPC worked through challenges other lenders would not to create a favorable loan for both borrower and lender. The borrower is now has a conditional final plat approval to begin selling lots and cabins to a list of buyers that have expressed interest.
This transaction adds to more than $13.5M in projects funded by CPC Diversified Fund in 2015 alone—all originated by FundingDatabase, CPC’s trusted source for deal flow and underwriting services.
“It’s quite fulfilling to close loans that not only protect CPC Diversified Fund members as a priority, but enable a borrower to succeed,” Kellen Jones, COO of Cache Private Capital stated. “It’s hard to find yield backed by security and disclosure, so we’re proud to operate this way.”
Cache Private Capital Diversified Fund is a commercial mortgage REIT managed by CPC Management that makes short-term bridge loans, nationwide (www.cacheprivatecapital.com). Collateral in CPC Diversified Fund’s portfolio includes commercial, multifamily, retail, special use, recreational, development, and single family rentals.
FundingDatabase is a loan sourcing and fintech company that originates for dozens of private lenders and develops tools that serve borrowers, brokers and lenders (www.fundingdatabase.com).
Release ID: 88087