We work with the development team to analyze various design strategies which then allows us to better position the project in the capital markets and engage the interest of various capital providers at the highest intellectual level.

Successful projects must be vetted along numerous lines including:

Market Supply/Demand: Characteristics include market absorption rates, vacancy rates of specific competing projects, as well as in-depth knowledge of those projects in various planning stages. This serves as the base underwriting criteria for the financial pro-forma.

Project Quality: This includes physical design, interior layout, exterior/interior finishes, HVAC and other mechanical systems, transportation access, amenities, parking ratios, landscaping.

Capitalization: Primary concerns are the amount of equity in the project as well as the financial robustness of the project sponsor and equity partner(s).

Permanent Financing: Availability of permanent financing to take out the construction lender is of paramount importance. Generally this must be obtained simultaneous with the construction loan with the alternative being a stand-by commitment.

Development Team: Critical is the developer's past experience with project(s) of this size and scope as well as the overall project team including the architect, structural and mechanical engineers, and other critical members.

The three overriding construction financing objectives are:

1. Securing project financing at maximum proceeds thereby minimizing equity requirements.

2. Achieving the lowest cost of capital.

3. Negotiating the best terms including minimizing and/or eliminating recourse requirements.

The most effective way to achieve these outcomes is to implement a market-based approach targeting 1) lenders actively placing capital in the specific type of project, and 2) debt providers with an intrinsic interest in the type of project you are pursuing.

Please contact us to discuss your construction loan requirements.