Commercial Ground-Up Construction12/14/2018
Lead Funding provided a private money construction loan to a real estate developer for a multifamily project in Aurora, Colorado. The developer already owned the land and 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%.