| Transaction: |
Dobson Park, Chandler, AZ |
| Property Type: |
Single Family Development (162 units) |
| Structure: |
Preferred Equity |
| MF Investment: |
$6,000,000 |
| Date: |
May 2005 |
| Broker: |
Innovative Capital Partners |
| Senior Loan: |
$34,600,000 (A&D loan plus construction loan) |
| Description: |
This was the second development funded by MF with this developer who had sought an institutional partner willing to provide equity on a programmatic basis to expand its homebuilding business in the greater Phoenix market. Innovative Capital Partners, a Mountain Funding correspondent focusing on residential development transactions nationally, had helped structure a program whereby an agreed structure exists for MF to quickly invest preferred equity as new projects arise. Although investing a high percentage of overall costs, MF share of profits is limited to a fixed percentage of sales rather than a percentage of ultimate profits, thus allowing the developer to keep the bulk of potential upside. |
