Long Term Development Financing Available
In the current challenging development financing environment, not all financing is created equal.
Traditional development lending sources remain on the sidelines while equity providers are happy to offer financing provided you're willing to provide 20 to 25+ percent returns within a 3 to 7 year payback window.
There is however another source of financing which will allow developers and builders to finance public improvements at rates of approximately 5 to 6 percent payable over a 25 year period.
One more thing... you are only responsible for the payback of the special tax or assessment while you own the property; once the property is sold, the remaining principal obligation is passed on to the end user of the property (e.g. home owner, commercial tenants).
Case in point, in early December 2015, we assisted one of our Las Vegas land developer clients close on a $24.5 million special assessment financing with an average cost of capital of 4.98% payable over 20 years.The security for bonds is the land only; no developer guarantees required.
For more information on how your company may tap into this powerful financing tool, contact Carter Froelich at 602-381-3226 ext. 10 or email at email@example.com
Carter Froelich - Managing Principal
Posted on 12/22/2015 at 10:00:00 AM