A seasoned broker approached LFB with a loan request to develop 170 acres of residential land located Northwest of Atlanta, GA. Their client is a regional developer who purchased the land all cash and was requesting financing to develop 284 single family lots, and complete vertical construction on the first 133 homes. The sponsor was already under contract, with a hard deposit, to sell 80 of the phase 1 homes to a rental fund.
LFB provided the sponsor with an 85% LTC, 70% LTV loan to develop all 284 lots, and build out the first 133 homes of the project. After considering the acquisition price and cash spent to date, LFB was able to finance 100% of the remaining construction costs for the first phase of the project. LFB will also provide additional financing to complete the remaining project on a rolling, phased basis. The project will offer four different floor plans ranging from 1700-1900 SF and the average sales price will be about $340K per home. The sponsorship group has excellent credit, liquidity, and experience so we were able to offer limited recourse, only subject to carve outs and a completion guaranty.
LFB will continue to work with knowledgeable brokers to provide high-leverage construction financing for their clients. We are actively funding loans for experienced sponsors and developers on their single and multi-family projects nationwide.
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