This high-spec construction project includes a 3,800 s.f. main house, and a large, detached ADU over a 3-car garage, all set on a wooded, private 1.59-acre parcel. Like so many construction loans nowadays, the duration of time between the first call and closing was a long one…over 2 years in this case. The already absurdly slow permitting process in most cities and counties has been further exacerbated by Covid and lingering staffing issues, and by utility companies that seem to have totally lost their way, so patience is both a virtue AND the difference in getting these long-delayed transactions to closing. Also critical for the sponsor was holding rate and deal structure in a rapidly changing environment. The LOI for this loan was issued 6 months before the closing, and being an unleveraged, fund-based lender, SFG was able to hold the rate while most around us were moving rates up or stepping away altogether from the table and their prior commitment.
Heading into market uncertainty and what appears to be the next economic downdraft, Seattle Funding Group draws upon over 34 years of lending experience and the strength of being an unleveraged lender. SFG is holding steady the course, the rates and the programs to support our clients, brokers and sponsors, while many around us are having their lending models, rates and activity dictated by third-party capital providers. SFG remains active in spec residential construction, as well as construction of other asset classes, throughout most major markets of the Western US.
Developing, maintaining and relying upon a lending relationship through uncharted waters can often be frustrating and challenging, unless it’s with SFG. We’ve been here many times before over the past 34 years, and we’ve never stopped lending or providing…Capital at the Speed of Business.