LFB Ventures was approached by the developer of a master planned community in Payson, Utah who was seeking our advisory services in restructuring their underlying financing. Payson is a city within Utah County, south of Salt Lake, that lies in the path of Utah’s continued housing boom and population growth. This demand for new housing in Salt Lake City as a whole has pushed many homebuyers south along the 15 freeway in an effort to chase affordability and available new homes.
The project had approvals for nearly 500 lots, over 6 phases, with site work still remaining. At time of engagement, the underlying acquisition and entitlement loan had matured and was accruing interest. In addition to working the capital markets to determine best options for the client, LFB engaged strategic development and homebuilding partners for the client as a solution to not just refinance the project, but complete its build-out. The end result was LFB structuring a joint venture partnership between the client and a local, private homebuilder. The partnership allowed the underlying debt to be retired, and provided the necessary funding for the partnership to develop lots and build homes.