| Transaction: |
Arroyo Seco, Buckeye (Phoenix), AZ |
| Property Type: |
Residential Land Seeking an Upzoning |
| Structure: |
Mezzanine Loan |
| MF Investment: |
$6,000,000 |
| Date: |
Dec 2004 |
| Description: |
Developer is a national homebuilder based in Michigan that seeks undervalued land acquisitions in strong residential markets. When opportunities arise, they have to respond quickly. Moreover, such situations are never risk-free and finding lenders willing to go up the capital stack is always challenging. In this instance, Developer required a high-leverage (93%) mezzanine loan within 3 weeks on a land deal, with risks that included entitlement, archeological and general market risk. Moreover, Developer wanted a mezz structure in lieu of giving of equity to a partner. Besides from drawing comfort from the developer’s proven track record, Mountain Funding’s in-house residential underwriting team (comprised of our development office in Boca Raton, our correspondent relationships in the Southeast and our local zoning and market consultants) helped it close the loan in time and create a platform of repeat business with this developer.
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