Loan Type: Construction
With permits and subdivisions approved by the city, this project was ready to begin construction; however,:
• This was our Client’s first townhome development and many lenders are skeptical of first time developments due to speculative hurdles they foresee
• Many lenders would shy away from borrower’s requirement to maintain a certain level of liquidity in order to conform to the bank’s underwriting standards
Complying with the Client’s need to maintain liquidity, Grand Pacific structured the loan to be highly leveraged as possible. We closed quickly, hoping to see the project start so our Client can realize their profits.
• Minimized expenditure by providing 100% of construction cost, loan fees, and a land draw
• Provided a payment reserve that would cover into extension option
• Recognition of successful development records in other property types