Multifamily Development - Forth Worth, TX
$32,500,000 loan arranged by PlattPointe Capital.
FORT WORTH, TX - PlattPointe Capital recently arranged a $32,500,000 senior debt loan for the construction of a 6-building, 226-unit apartment complex. PlattPointe was approached by the sponsor in the latter half of 2020 after experiencing issues with their existing financing partner due to complications from the pandemic.
PlattPointe introduced the sponsor to a local private debt fund that provided senior debt at 80% LTC which met their request and enabled them to proceed with their existing equity partner without having to raise additional capital.
• 80% LTC
• $32,500,000 Loan Amount
• 7.5% Interest Rate
Due to current commodity market uncertainties, the borrower and general contractor structured a modified Guaranteed Maximum Price (GMP) contract that helped reduce price increase risks of lumber and other materials by implementing a time-constrained material acquisition plan. This was the sponsor's first multifamily construction loan as the primary developer, but their experience on former projects combined with their general contractor’s experience provided enough certainty of execution for the lender.
About PlattPointe Capital:
PlattPointe Capital LLC is a boutique commercial real estate capital advisory firm that helps developers and investors navigate the ever-changing capital markets by arranging numerous 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.
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TRANSACTION BY THE NUMBERS
Loan to Cost (LTC)