13 Unit Build-For-Rent Development - Lakewood, CO

LAKEWOOD, CO - PlattPointe Capital recently arranged a $4.3MM ground-up construction loan for the development of a 13-unit, for-rent, shovel-ready, townhome development in Sloan’s Lake, a submarket immediately west of downtown Denver. The project sits two blocks north of the Sheridan light rail station in Lakewood, one of the highest barriers to entry jurisdictions in the state. The project has taken approximately three years to get to its fully entitled/permit-ready status. Each unit has 2 bedrooms and 2 baths averaging 930 SF, which are sized efficiently for meeting the Denver area’s renter home attainability. There has been tremendous growth nationally in the number of Built-for-Rent communities being developed over the past several years, fueled by investor appetite for this product type.

The developers are a highly experienced team who have developed and constructed more than 5,000 residential units in a wide array of product types and densities across multiple geographies including Denver, Chicago, Austin, and Salt Lake City.

PlattPointe was able to secure a private debt fund with attractive terms promptly to meet the developer’s leverage requirement and expectations on terms.

Financing Highlights

• 11.3% Interest Rate
• 74% LTC
• Limited Recourse
• Interest-Only
Present Market Conditions
Since the U.S. Federal Reserve began aggressively raising interest rates in the second quarter of 2022, real estate investors, owners, and developers are facing much more costly financing options for their properties and developments.  Higher mortgage payments, smaller loan amounts, lower valuations, and the requirement of a significant depository relationship are just a few of the characteristics that make for a challenging lending environment.  PlattPointe Capital has a variety of financing tools that we can offer if you find yourself in a difficult position with a property you need to refinance or land you need to build on.
About PlattPointe
PlattPointe Capital LLC is a boutique commercial real estate capital advisory firm that helps developers and investors navigate the capital markets by arranging optimal alternative debt and equity options for a client’s project. Our vision is to engineer the most efficient capital stack based on the constraints of a given project and sponsor’s needs.

More information can be found at www.plattpointe.com.

For any inquiries nationwide, please contact:
Jason Aubrey | 303.598.3876 | jason@plattpointe.com
Creighton Bildstein | 303.589.4258 | creighton@plattpointe.com
Matthew Biegner | 720.470.7706 | matt@plattpointe.com