Delray Beach, FL
Multifamily, Residential Land
Residential Ground-Up Construction04/29/2022
i Fund Cities
i Fund Cities
i Fund Cities (iFC), a direct lender, funded a private construction loan for a townhouse development in Delray Beach, Palm Beach County, Florida. The loan included the purchase of the land, plus the ground-up construction of 6 super-luxury townhomes to be completed in two phases. iFC funded 54% of the $5,800,000 purchase and 100% of the soft costs of $220,000 for a total loan of $3,386,000. The Borrower put down 46% of the land acquisition cost. Once the project has full zoning and building permits, we are going to refinance into a new construction loan for $11,790,000 to build the six townhomes. Construction was scheduled to begin in the Fall of 2021. The completed value is projected to be around $3,700,000 to $4,300,000 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 plus 4 other projects within 30 days of visiting the properties in April 2021.