A physical therapy center needed an $1.75 million expansion loan approval to purchase a suitable area office park to convert into a physical therapy center.
- The Company: Client is a limited liability corporation, incorporated under the laws of Georgia 2005. Company is in the business of providing physical therapy services.
- Capitalization: The Company anticipates the need for financing as follows:
- Use of Funds:
- Real Estate Refinance – Bank $1,500,000
- Fees, closing costs $50,000
- Purchase office park $200,000
- Total Use of Funds: $1,750,000
- Source of Funds: Loan $1,750,000
- Loan Request: A refinance of APT operational headquarters. Mr. Water needs to purchase another location. Total dollar requested $500,000, twenty (20) year amortization with a five to seven-year fixed rate. Remaining principal and interest to be amortized over remaining term of loan at simple interest.
- First mortgage on land and improvements on Johnson property in south Atlanta
- First mortgage on new property situated in front of Long Park facing I – 95
- Collateral value will be supported an appraisal, receipts, and appropriate schedules prior to closing as required by lender.
The bank had initially turned down the expansion loan due to insufficient cash flow. This prevented the purchase of the office park needed for the new physical therapy center.
Veillon rewrote the due diligence financials on a cash basis and was able to locate and demonstrate a more up-to-date cash position and positive cash flow.
The End Result
The client was able to purchase their office park to convert it into a physical therapy center with the expansion loan approval we obtained for them with their bank.