| Transaction: |
Silver Rock
Buckeye, AZ |
| Property Type: |
Residential Land |
| Structure: |
Mezzanine Loan |
| MF Loan: |
$17,600,000 |
| Date: |
Mar 2006 |
| Broker: |
None |
| Senior Loan: |
$26,430,000 |
| Description: |
Developer had brought this 488-acre parcel through preliminary plat approval adding great value through the process, in a very strong residential market. Discussions had begun to sell the lots to national homebuilders, but additional predevelopment capital was required to achieve final plat necessary to consummate a sale. Additionally, developer had invested significant amounts of equity which it now wanted to partially recoup based on the added value. Finally, the existing senior loan had exhausted its interest reserve. MF provided a $17.6 million mezzanine loan to accomplish all of these requirements, plus provide additional interest and other reserves to carry another 24 months if needed. Cashing out of equity is not something commonly done, but in situations where a developer has clearly added significant value as happened here, MF will recognize that effort and do so. |
