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PLATTPOINTE ARRANGES $16.1MM CONDO CONSTRUCTION LOAN

FOR IMMEDIATE RELEASE

For: PlattPointe Capital, LLC

2420 17th St. - 3rd Floor Denver, CO 80202

Information Contact: Matthew Biegner, Principal 720-470-7706

matt@plattpointe.com


PLATTPOINTE ARRANGES $16.1MM CONDO CONSTRUCTION LOAN

High leverage, non-recourse debt fund financing accelerates new condo project


December 9, 2019



DENVER, CO - PlattPointe Capital arranged a $16.1MM non-recourse construction loan to develop a 58-unit residential for-sale condominium building in Denver, CO. The building's 58 units will be a mix of one-bedrooms, one-bedrooms with a den, two-bedrooms and mezzanine units, ranging from $339,000 to $617,750.

The developer is seeking to capitalize on continued growth and demand along the South Broadway corridor. Non-recourse, high leverage financing from debt funds continue to fuel condo development, especially due to the flexible nature of no presale requirements or prepayment penalties.

Loan Highlights:

$16,100,000 loan amount

18-month interest only loan

Non-recourse to sponsorship

No pre-sales required

85% LTC


The condo development is slated for delivery in the third quarter of 2020. Phase I construction will deliver in Spring 2020 with Phase II coming early 2021. The loan is structured with the option to roll financing into Phase II under the same terms.


The Overland Park Neighborhood the South Broadway Corridor has at least nine planned or in progress projects in 2019 and has brought renewed propose to the area. The project is also serving as a beacon for highlighting key community public-private partnerships. “Since the announcement of the vision and redevelopment plans for the Overland Park Neighborhood, the South Broadway Corridor has and continues to go through tremendous changes," said Creighton Bildstein, Principal at PlattPointe Capital. Bildstein is bullish on the condo building’s location citing a pedestrian bridge being built over Santa Fe Drive to the Overland Park Golf Course, as well as a planned marketplace and retail hub at the intersection of Jewell Avenue and Broadway in addition to the nearby restaurants and parks that already exist.


Due to the trailing effects of condominium defect regulations, condominium development in the last decade have lagged other national markets. As a result, Denver has a lower ratio of condominium projects than other similarly situated U.S. cities. Of Denver's total residential inventory, condos only make up approximately 7% of the total residential market. A healthy market would expect inventory to be in the 15% to 20% range. The condominium market has become more attractive to local developers, and a number of significant projects are under construction or nearing completion, demonstrating increased interest in this product type. The subject property will be ideally situated within this emerging and revitalized market, and the combination of market appetite, location and property amenities should position the property in an appropriate fashion to take advantage of the current market dynamics.


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 a capital markets advisor: Matthew Biegner // 720.470.7706 // matt@plattpointe.com

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