Looking for suggestions

8 Replies

I have a client/investor that is building his own apartment complex. Its 20 units and located in Colorado. He has about $750K in the deal plus a bank construction loan of about $1.6M.

He is 50% preleased and is running short on funds to complete the project. He is looking for a $200K to $250K loan/investment/anything to complete the project. The projected value on completion is in the $2.8 to $3.0M range.

Any ideas, referrals, solutions?

Have you looked at mezzanine lenders for this project? If you add the needed $250k to the construction loan the total LTC is 66%.

I would think since the LTC is on the lower end of the debt spectrum there maybe some mezz lenders that may have some interest in the project.

I don't have any referrals for these types of lenders as I haven't been in a project where one was even being contemplated for a very long time.

Originally posted by @Christopher Telles :

Have you looked at mezzanine lenders for this project? If you add the needed $250k to the construction loan the total LTC is 66%.

I would think since the LTC is on the lower end of the debt spectrum there maybe some mezz lenders that may have some interest in the project.

I don't have any referrals for these types of lenders as I haven't been in a project where one was even being contemplated for a very long time.

hard to do a Mezz loan with a construction Lender. Need soft second or equity loan

Originally posted by @Nicolas Paez:

hard to do a Mezz loan with a construction Lender. Need soft second or equity loan

I get these capital updates from one of the larger CRE loan brokers and their updates suggest mezzanine is aggressive because lenders are opting for lending options that deliver yield.

This has apparently led to a plethora of new mezzanine lending platforms competing for their piece of the capital stack.

part of my message deleted, idk how, sorry about that; Years ago in a large adaptive reuse project we had mezzanine sittIng behind a construction loan with a NMTC takeout loan. This was a long time ago, early 2,000's but I don't remember having any issues with the mezzanine lenders. The NMTC loan though was a completely different story. Had to wait for the treasury department to issue each revisement to the banks. Lots of getting your seller to wait for the treasury department to write tax law.

He could check with his local Reia in Colorado. There could be a commercial group attached to it...

404‑557‑0867

Originally posted by @Christopher Telles :

part of my message deleted, idk how, sorry about that; Years ago in a large adaptive reuse project we had mezzanine sittIng behind a construction loan with a NMTC takeout loan. This was a long time ago, early 2,000's but I don't remember having any issues with the mezzanine lenders. The NMTC loan though was a completely different story. Had to wait for the treasury department to issue each revisement to the banks. Lots of getting your seller to wait for the treasury department to write tax law.

 Thank you for the suggestion. Unfortunately NMTC do not apply to residential properties. As for the mezz, the project is over 80% complete and getting a mezz in place will be very hard unless its a private lender.

Hey Nic,

The people that I have used in the past on smaller projects but also do commercial loans is Merchants Mortgage.  The web link is:

http://www.merchantsmtg.com/construction-loans.htm...

The person I work with  is Susan and she is EXCELLENT.  Her info follows:

Susan Aubin

Vice President

Colorado License: 100007515

NMLSR ID #: 825568

Merchants Mortgage & Trust Corp.

7400 E. Crestline Cr., Suite 250

Greenwood Village, CO 80111

Direct: 720-554-9480

Cellular: 303-514-0815

Fax: 303-220-3317

Susan Aubin <[email protected]>