Short-term mortgage lender sets a $65M deal record in 04

Real Estate Weekly, August 18, 2004

Gala Resources LLC, a New York-based direct lender providing short-term mortgages to real estate investors, dealers and builders, set a company record in the first half of 2004 by closing 339 loans totaling $65 million.

The high volume marks a significant increase over the total number of loans the company closed in the same period last year, said the firm's chief operating officer Alan Haberman.

In the first half of 2003, Gala closed 256 loans totaling $41 million.

According to Haberman, average loan size is increasing and the default rate is "practically zero."

He cites an overall sense of security in real estate investment as a primary driver behind the high level of activity.

"Today's real estate market continues to attract investors trying to stay ahead of rising interest rates," he said.

"Our client base grows by the week, because investors know we can close quickly and our loans are pre-payable at any time without penalty."

Noteworthy transactions include:

A $2.9 million loan for the purchase of land and construction of nine, three-family homes in Brooklyn;

A $2.4 million loan for the purchase of a vacant, 40-unit apartment building for a condominium conversion in Washington, D.C.;

A $1.1 million loan for the purchase of land and the construction of five, two-family homes in Brooklyn;

And a $700,000 loan for the repositioning of an office building in Philadelphia.

Gala Resources is active in New York, New Jersey, Connecticut, Washington, D.C., Chicago, Atlanta and the greater Baltimore area.