Washington Construction Lenders for Commercial Real Estate

Precision Capital, a direct private lender, funded a $2,300,000 construction loan for a commercial building in Pasco, WA. The construction budget was $2,010,227 and we funded 80% of the construction budget in 1st lien position, while the Borrower contributed 20% cash. The completed value was $3,220,000 so our loan-to-completed value was 71%. The interest rate was 11.99% and the loan term was set at 24 months. We charged 3% origination points, and the broker earned a $23,000 commission. The Borrower was an experienced contractor with excellent credit. He purchased the land on his own. He plans to occupy 65% at completion with a sports training facility, and the other side will be a restaurant/brewpub which will be leased. The subject property has an approximate square footage of 10,880 set in a 29,781-square-foot lot. The project will be completed in late summer 2023. This property is in a perfect location, sitting on one of the main roadways in Pasco. The Borrower plans to eventually refinance as an exit strategy. This CRE ground-up construction loan was funded in November 2022.

Parkview Financial, a direct private lending firm, funded a $9.4M construction loan for an 82-unit multifamily project in Tacoma, WA. The four-story building will be situated on a 19,500-square-foot land parcel and will include an 82-car parking garage. The unit mix will include 53 studios averaging 312 SF and 29 one-bedroom units averaging 638 SF. The units will offer residents luxury plank vinyl and treated concrete floors, exposed wood truss ceilings, and stone surfaces, among other upgrades. On-site amenities will include a fitness center, rooftop terrace, community room, event space, dog wash, grass area, and a bike storage and repair room.

This project will provide smaller unit sizes which create more affordability for area renters, complemented by a number of attractive unit upgrades and common area amenities. Construction commenced with our loan and completion is anticipated for early 2022. This CRE private construction loan was funded in February 2021.

The City of Tacoma is a major submarket of Seattle and features the lowest rental rates in the metro area. Additionally, vacancy rates, which were posted at approximately 3.9 percent over the last quarter of 2020, are currently among the lowest in the area. The combination of attainable rental rates and strong demand, along with limited apartment development over the past decade, has created a prime environment for new development in the Puget Sound area.