Quarry Financing

When South Florida developer R. Donahue Peebles purchased the Quarry in 2005, he took out a $16.5 million "non-recourse" loan from North American Capital Advisors(NACA).

A non-recourse loan is:

A loan where the lending bank is only entitled to repayment from the profits of the project the loan is funding, not from other assets of the borrower.

NACA lists the Quarry loan as a:

$17 million bridge loan representing 90% of all-in costs for 87-acre assemblage on the Pacific Ocean in California.

A bridge loan is:

A short-term loan that is used until a person or company secures permanent financing or removes an existing obligation. This type of financing allows the user to meet current obligations by providing immediate cash flow. The loans are short-term (up to one year) with relatively high interest rates and are backed by some form of collateral such as real estate or inventory.

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As the term implies, these loans "bridge the gap" between times when financing is needed.