Private Construction Loan for Luxury Townhome Development in Delray Beach, Florida

I Fund Cities (iFC), a direct private lender, funded a $15.4M loan for a townhouse development in Delray Beach, Palm Beach County, FL. The loan included the purchase of the land, plus the ground-up construction of 10 luxury townhomes to be completed in two phases. The first phase consisted of funding 80% of the total project cost with 100% of soft and construction funded in escrow, and 50% of the acquisition price. Once the first five home foundations are up and the buildings are 50 to 75% complete, iFC will release the remaining land from the loan to originate a new construction loan for the remaining five homes. Construction was scheduled to begin in the Fall of 2021. The completed value is projected to be around $2,000,000 to $2,400,000 per unit. The Borrower, a Philadelphia-based development firm that specializes in residential and multifamily new construction, was primed to get into the highly competitive Delray Beach real estate market. They planned to build six luxury and super-luxury development projects in 2021 and 2022. Although they have major development experience in Philadelphia and had a full network, team, and development plans ready to go in Delray Beach, they were growing frustrated with the lending options available; banks were hesitant to follow them into a new market where they had no track record. iFC funded the land acquisition for this property and 4 other projects within 30 days of visiting the sites in April 2021.