|
A well-known regional developer with 20 years experience engaged Remington Financial Group, Inc. to secure financing to construct a large-scale student housing complex. The development originated more than 10 years prior with the assemblage of prime real estate at the entrance to the campus.
After several failed attempts by notable national developers to build up the site, Remington's client created a 12 month plan that would take the development from conception to ground breaking. The plan culminated in a high quality modern student housing development, as well as a retail and movie theater complex, which is the largest privately financed development in the region's history. The project will serve the university, but it also represents a cornerstone in the revival of the area.
In competition with the developer's existing long term relationship bank, Remington won the deal based on its ability to deliver financing that was superior to the developer's numerous options. The nearly $61 million construction financing was underwritten with a two year term on an interest only basis. Loan proceeds were set at 80 percent of the project's stabilized value without loan-to-cost constraint, an extremely rare benefit extended to the developer through RFG's financing package. The construction financing also contained a provision that allowed the loan to become fully non-recourse when a forward commitment that funds at construction completion is secured.
<< Back To Case Studies |
