Construction Loans

Construction Loans

  • Loan amounts of $5,000,000 to $35,000,000
  • Maximum 75% LTC
  • Rates start at 6% current pay with a 2% accrual (per annum, non-compounding, due upon payoff/maturity). Rates subject to change due to evolving market conditions at this time
  • 2% Origination Fee, 1% Exit Fee
  • Terms of 2 – 3 years with extension options
  • Interest Only, Non-Recourse
  • Primary markets (preferably in-fill locations)
  • Strong Sponsorship with significant Net Worth & Liquidity
  • Sponsors preferably have track record of completing similar type projects in the subject market or similar markets
  • Multi-Family or Mixed-Use projects only; Condo projects may be considered
  • Will allow PACE funding (typically up to 80% - 82% LTC) or a Mezz/Pref Equity piece upon review of terms

VERY IMPORTANT - unlike traditional construction loans, all loans are FULLY FUNDED at closing; that means that Sponsor pays interest (loans are IO) on the total loan amount from closing (dutch interest/negative arb), not on individual draw amounts. The benefit of “fully funded” is that the lender can offer certainty of execution as all the funds needed to complete the project are readily available and earmarked only for this project; we are flexible in making changes as the construction timetable and needs may change; and we can move very quickly to get the money into the Sponsor’s hands. Basically, we can move as fast as the Sponsor can to allow them to complete their project in a timely manner. The lender has a highly responsive and experienced in-house Asset Management team.

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