ValueXpress obtained an $866,000 construction loan commitment from ValueXpress’ Mississippi banking partner, Guaranty Bank to be used to construct an 8,000-square-foot retail building that has been pre-leased to three tenants. The transaction was originated by Jay Bhakta in ValueXpress’ Mississippi office.Bhakta faced numerous hurdles in getting the project committed. First, the borrowers approached him after significant time had passed on the land purchase contract, as they had been turned down at most of the local banks in the area.
“The borrowers are extremely creditworthy,” explained Bhakta, “but the local banks just do not want to make construction loans. The borrowers were going to lose a significant deposit if I did not obtain a commitment for them quickly.”
Luckily, ValueXpress and Bhakta have a significant relationship with Guaranty Bank, which quickly committed to the deal. But then another issue arose, as the property had a drainage basin that impinged on the building’s footprint. Bhakta brought in a construction company that he worked with on prior projects; the company solved the problem and will likely be awarded the construction contract.
“Borrowers think I am just a lender, but I wear many hats to get these projects done for my clients,” said Bhakta.