Ground-Up Construction Loan for 6 Luxury Townhomes in Delray Beach, Florida

I Fund Cities, an alternative lending platform, funded a $15,000,000 senior lien position ground-up construction loan of 6 luxury townhomes in Delray Beach, Florida. The purchase price was $5,500,000 and the construction budget was $16,660,636. The completed value was estimated at $32,600,000 so our loan-to-value was 57%. Two years ago, we provided a $3,000,000 bridge loan for the purchase of the property which had a structure that was eventually torn down to build these 6 luxury townhomes. Our initial loan included a $200,000 budget for soft costs and horizontal work. Once building permits were approved, our Borrower demolished the building and began the dirt work and foundation. Since this project was owned for 2 years and they were now fully permitted and construction was underway, we were able to give the equity value in the land to make for a better loan. We not only paid off the original bridge debt of $3M, but we were able to fund 100% of the construction funding needed to get these homes to the finish line. Completion is slated for the spring of 2024, and two of the six townhomes are already pre-sold. This residential ground-up construction loan was funded in April 2023.