| Transaction: |
Blackwater Crossing, Orlando, FL |
| Property Type: |
Acquisition, Development and Construction of condominiums |
| Structure: |
Hard Money AD&C Loan (432 units) |
| MF Investment: |
$54,000,000 |
| Date: |
Dec 2004 |
| Description: |
Borrower is a resourceful and experienced brokerage concern that was able to tie up a prime condominium site outside WDW in Orlando, but was unable to arrange financing because: (a) it did not have the balance sheet and equity required by conventional lenders; (b) it needed high leverage one-stop financing for acquisition and development of a condo project; and (c) its lack of developer experience was a non-starter with most lenders. Although late in the game, MF was able to underwrite and close this transaction because: (1) it was willing to provide high leverage (93%) in exchange for a profit participation in this project which MF recognized as a great opportunity, and (2) Borrower agreed that it would either joint venture with an acceptable, experienced residential developer or allow MF’s development affiliate in Boca Raton manage the project (something most lenders are not equipped to do).
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