Transaction Details
83-Unit For-Sale Townhomes
$74,800,000
Flagstaff, AZ
- Project Type: 83-Unit For-Sale Townhomes
- LTV: 75%
- LTC: 85+%
- Term: 36 Month Term
- Rate: 10.25%
- Guaranty: Non-Recourse
Transaction Overview
MBP successfully arranged construction financing for a repeat sponsor client to support the development of an 83-unit for-sale townhome community located in a high-barrier mountain market in the Southwest. The financing was structured as a non-recourse, high-leverage, all-in-one facility that funded both the horizontal infrastructure and vertical construction phases of the project, while maximizing leverage and minimizing the sponsor's required equity contribution by recognizing the embedded value of the land.
The transaction required thoughtful execution and lender positioning. Although the sponsor had not completed a vertical development project of comparable scale in more than three years, MBP successfully demonstrated the strength of the sponsorship through its broader development experience, the proven capabilities of the project's locally established general contractor, and the market's favorable supply-demand fundamentals. The financing partner ultimately underwrote the opportunity based on the collective strength of the sponsorship team and the project's compelling business plan.
Beyond arranging the financing, MBP served as a strategic capital partner throughout the transaction, structuring a solution that aligned with the sponsor's long-term objectives while providing the certainty of execution necessary to move the project forward. Reflecting our conviction in both the sponsorship and the opportunity, MBP elected to reinvest a portion of its origination fee into the project's limited partner equity alongside the sponsor, further aligning our interests with the long-term success of the development.
MBP specializes in debt and equity placement for all asset classes. Our extensive network of unique capital sources in development and permanent financing and extensive capital markets knowledge allows us to tackle a wide variety of transactions, regardless of complexity or size, to benefit our clients.
MBP has a team of dedicated and experienced finance professionals with you at every step. We are consistently improving and expanding our capital market relationships and are committed to exceeding our client's expectations through these relationships, innovative solutions, and outstanding work ethic.
Intermediaries Team
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