Private Money Ground-Up Construction Loan for Multifamily Development in Aurora, Colorado

Lead Funding, a Colorado-based private lender, funded a $6,600,000 1st lien position private money ground-up construction loan for a multifamily home in Aurora, CO. The Developer already owned the land and had invested $1.2MM into the project. They got financing from a bank while working on the infrastructure phase of the project, but there was too much red tape and it took too long to get funds drawn. Their frustration prompted a search for a private lender, and they were willing to pay a higher cost in exchange for speed and efficiency. We refinanced the bank loan in early 2018 and provided construction financing for the first phase of the project, a total of $2,100,000. Phase 1 consisted of 6 townhomes, with a completed value of $1,800,000. It took about 6 months to complete the townhomes. In late 2018, the Developer was ready to go vertical with Phase 2. We provided a 2nd loan in the amount of $4,500,000 for a 5-story building with 22 apartment units. The estimated completed value of the entire project is $8,800,000, so the combined LTV for our two loans is 75%. This CRE private money ground-up construction loan was funded in December 2018.