Bridge Loan for Mixed-Use Property in Newport News, Virginia

Myers Capital Hawaii—a residential and commercial mortgage banking company and direct private lender—partnered with its affiliate, Koa Mortgage Fund, to finance a $1,136,000 equity cash-out loan with a construction holdback secured by a mixed-use repositioning project in Newport News, VA. The property’s current value was estimated at $1,500,000, resulting in a 44.58% loan-to-value. The projected after-repair value was estimated at $2,300,000, corresponding to a 49.39% loan-to-after-repair value. The Borrower needed renovation capital but was constrained by liquidity and leverage tied only to the subject property. To increase proceeds while maintaining conservative exposure, we cross-collateralized a free-and-clear condo and financed 100% of the $469,150 construction budget. Funds were held back and disbursed as work progressed. Conservative leverage at stabilization, supported by multiple collateral sources, provided strong downside protection while meeting the Borrower’s capital needs. The cash-out delivered the required liquidity, and upon completion, the Borrower plans to lease the property for commercial and event-based uses to support stabilized cash flow and a future takeout or sale. The subject property was approximately 9,416 square feet set in an 18,731-square-foot lot. The Borrower had good credit. The loan carries a 15% interest rate with 12 months of guaranteed interest. This bridge loan was funded in January 2026.