6,900,000 Bridge Loan – No Prepayment Penalty
Landmark Capital secured $6,900,000 of short-term bridge financing to replace a maturing land loan on a 251-acre site with final plat approval for 329 residential lots in, Douglas County, CO.
Challenge of the assignment:
Secure short-term, non-recourse debt financing to provide the Sponsor with sufficient time to complete: final agency approvals; builder sale documentation; the infrastructure financing plan for the ultimate sale of this 329 lot subdivision. The underlying hard-money loan had less than 60 days remaining without extension options at the outset of the assignment. The Sponsor had existing offers for preferred equity and debt; however, was looking to avoid the proposed prepayment penalties.
Solution:
Having completed multiple bridge loan transactions based on pre-sold lots, Landmark Capital was able to identify a lender who understood the demand drivers of Metro-Denver and the immediate sub-market. Landmark Capital quickly learned the intricacies of the project, enabling the company to present the risks and opportunities in a coherent manner, leading to a successful close.