LFB Ventures was engaged by a repeat client to secure bridge financing for a fully developed, 48-unit multifamily community located in Boise, ID. The sponsor acquired the site in August 2022, completed development and construction and began leasing in October 2024. Historically, the sponsor has sold developments upon completion, but market fundamentals motivated a change in business strategy.

The new facility, underwritten to 70% of stabilized value, provided sufficient proceeds to retire both senior and mezzanine debt and a small operating deficit reserve. The twelve-month term without a prepayment penalty would provide the sponsor sufficient time to grow rents in line with market and sell at a higher price.

Following a period of rapid growth, new deliveries have slowed which has allowed for the absorption of existing inventory. This had led to a reduction in vacancies and a return of rent growth in market following a period that saw rents retreat in 2023.

LFB is actively working with this client on several projects in Montana and Idaho.