BLOOMFIELD CAPITAL Provides a $4.0 million mezzanine construction loan to facilitate the development of a 4-story building comprised of 45 condominium units.
SITUATION:
An experienced developer in Portland, ME was breaking ground on a demand-driven condominium project. They had secured a first lien construction loan from a regional bank in the amount of $13.2 million, but the Sponsor learned of his need for subordinate financing to complete the project’s capital stack, with little time to spare.
SOLUTION:
Bloomfield Capital was retained to provide a $4.0 million mezzanine construction loan, with the proceeds facilitating the time-sensitive initial site work, and to continue to fund future construction costs.
The Property is located in the Munjoy Hill neighborhood of Portland, Maine. Employment growth, demographic shifts, and limited existing supply has driven the Portland condominium market demand to historic levels. New construction condominium average price per square foot rose to $550 in 2020, a 10% increase from 2019, with units spending a median of 11 days on the market, down 50% from 2019.
The subject property is located in an area of high expected future growth, with increased demand for housing similar to that of the subject property. Bloomfield was able to gain comfort with multiple pricing and sale velocity scenarios, with flexibility in the event of a downturn in market fundamentals.
At closing, Sponsorship had already met the pre-sale requirements for future funding, and the outlook is for all units to be sold prior to completion of the development.
HOW CAN WE HELP YOU?
When you’re faced with these types of uncommon, urgent-to-close situations that require debt or equity between $2-20 million, there’s no group more experienced to handle them than the team at Bloomfield Capital.
In the 13 years we’ve been serving the commercial real estate community, we’ve funded nearly $1 billion of these types of complex, time-constrained capital requests. With us, you can have complete confidence that your important project is in experienced, tactical and confident hands.
Bloomfield Capital Contact:
Brent Truscott
Partner
248-745-1700
btruscott@bloomfieldcapital.com
www.bloomfieldcapital.com
