Like many others during this challenged period, the developer was left with an inventory of seven unsold condos and a remaining balance on the construction financing. The developer had made the election to rent rather than sell the remaining units and to hold for a better market, but the bank wasn’t willing to wait. The broker needed a new lender that would pay-off the bank’s construction loan and allow the units to be rented pending market improvement.
The broker worked closely with the existing construction lender to secure the necessary concessions, the developer added a significant amount of cash and SFG funded the balance required to close the transaction. The developer’s credit is now protected, the bank paid, the project stable and all parties satisfied with the outcome, including the repeat broker who contacted SFG with this opportunity.