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QFG Secures 1st and 2nd Mortgage Finance at Gateway Apartments – Mackay
QFG Secures 1st and 2nd Mortgage Finance at Gateway Apartments – Mackay
QFG was engaged, by a repeat client, to secure a structured finance package in a regional location for a residential development.
Regional locations have, once again, proved difficult to secure finance in, especially where a 1st and 2nd mortgage package is required.
Finance for a 1st mortgage was obtained at 80% of total development costs, this was sourced from a second tier bank. The loan amount was $12,000,000 PLUS a GST facility of $150,000.
A $2,500,000 2nd mortgage was also secured to tailor off the finance package to suit the borrowers request; this additional funding took the overall LVR against total costs to 97%.
The developer’s ability to secure a high level of presales assisted with the success of the finance package, 53 units of the 56 in total were presold. For a project of this size in this location presales were essential.
The Gateway development is the first of its kind in the immediate area. Located next to a future mix-use development which includes a Coles supermarket and a small strip of retail, Gateway is an ideal location for apartment living.
Just 2km from the CBD, Gateway is also down the road from the Mackay Base Hospital and 5 minutes from the main shopping centre. Gateway has all necessary amenities in the immediate area.
The apartments are part of a block-wide mixed-use development including a retail precinct and freestanding homes, with the city’s second main shopping centre going up literally across the street.
The five-storey, architect-designed complex occupies the northern corner of the block and features one and two-bedroom apartments.
Product Mix – 56 Residential Units
34 x 1 bedroom apartments from $299,000
Average internal unit space 61m2
Average price $314,765
22 x 2 bedroom apartments from $400,000
Average internal unit space 80m2
Average price $418,364
