| Transaction: |
Higley Park, Gilbert, AZ |
| Property Type: |
Single Family Development (293 units) |
| Structure: |
Preferred Equity |
| MF Investment: |
$17,000,000 |
| Date: |
Feb 2006 |
| Broker: |
Innovative Capital Partners |
| Senior Loan: |
$40,400,000 (A&D loan plus construction loan) |
| Description: |
This was the third development funded by Mountain Funding with this developer as part of a preferred equity program that we began in early 2005, which was instrumental in helping them expand their homebuiding business in the greater Phoenix market. As before, MF was able to close quickly becuase the structure, terms, and much of the due diligence was redundant. Although investing a high percentage of overall costs, MF''s share of the profits is limited to a fixed percentage of sales rather than a percentage of the ultimate profits, thus allowing the developer to keep the bulk of the potential upside.
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