The luxury apartment community is located in the heart of the coveted Linden Hills neighborhood with direct views and access to Lake Harriet.
D2CA was brought in to close this transaction in June in order to obtain maximum cash-out bridging financing which also offered flexibility for a possible sale and could close quickly for the property still leased.
D2CA worked quickly to provide several options for their client to evaluate; ultimately deliver a $ 11,500,000 bridging loan for more than 80% of the loan at cost price for the property which was then 72% occupied. The loan proceeds disbursed borrowers while fully repaying existing construction debt. The loan is prepayable freely, providing maximum flexibility to continue selling as stabilization quickly approaches. The loan was closed in 3 weeks, from the execution of the request to the financing.
“D2CA provided an efficient funding structure which provided us with the liquidity to pursue our next development while maintaining the flexibility to sell LH44 in the very near future while meeting our closing deadline,” said Jean Gross from 44e at Harriet LLC.
While the closing process was quick and straightforward, there were some initial challenges that had to be overcome.
“There was a ton of interest in this deal from traditional bridge lenders who were just looking to pay off construction debt – the challenge was to get them to provide a big drawdown on a new product that was still on lease. “, said Jack Cortese, vice-president of D2 Capital Advisors.
Adding to this challenge is the fact that LH44 is the first apartment building to be approved and delivered to a block on Harriet Lake in over 50 years. “I used to think barriers to entry were good for new developments,” Cortese joked, “but this has resulted in a lack of available offsets, which many lenders tend to rely too much on. Fortunately, we were also able to overcome this because of the superior product and location of this asset. “
Linden Hills is home to lively local restaurants, convenience stores and the timeless beauty of Lake Harriet. The newly developed LH44 offers residents an upscale yet accessible luxury experience. Between the high-end finishes, $ 1 million Views of Lake Harriet and access to the immediate commercial and urban core, this is the perfect location for those with a balanced lifestyle.
Josh talberg of JLL is currently marketing the property for sale, which is now over 80% occupied.
ABOUT D2 Capital Advisors
D2 Capital Advisors is the transaction advisory division of D2 Organization that arranges and structures real estate debt financing and equity financing for developers and investors across the United States.
For more information, please visit www.d2organization.com
SOURCE D2 Capital advisers