Mixed Use Master Development

Assignment

In 2016, an existing client, with a well-earned reputation for building large, mixed-use developments engaged our firm to work on a fifty-four acre project. The project required financing for both the land acquisition and for the subsequent horizontal development phase of the 500,000 square foot mixed-use project. The development plan for the project included a 112-bed assisted heath care facility, 240 residential apartments, a two-story office building, 2 small hotels, and 18,400 square feet of retail and restaurant space. We were excited.

Approach

Our team devised and secured a financing structure that funded the acquisition and horizontal development while allowing for partial releases for sales of pad sites to ‘arms length’ and ‘non-arms length’ parties. Master developing this large-scale project by dividing it into smaller parcels attracted the interest of smaller lenders who would otherwise not have considered the project as a whole.

Results

Our financing structure allowed the sponsor to divide a single eight-figure project into a handful of seven-figure projects. As a result, multiple institutions were able to lend to the project without having to be participants in a larger development loan.