LFB was engaged by a new client to arrange the financing for this project. The final leverage ended up at close to 90% loan-to-cost, significantly reducing the client’s equity requirement. The lender then recognized invested equity and land lift to further reduce cash to close.  The permitting process ended up taking 2 years to complete, but due to their excellent working relationship with their experienced GC, they used that time to workshop their budget, ultimately decreasing their construction costs by 41%.  Additionally, the project was initially underwritten as Built for Rent, however the sponsor was able to pivot to a for-sale business plan, allowing the sponsor and lender to bypass constraints on the loan proceeds from the cash flow of the project.

The Boise Metro continues to benefit from strong in-migration, due to the market’s affordability and steady job growth.  This sponsor’s flagship project is intended to bring high-end, affordable living options for first time home buyers in Boise, ID. With plans to build 17 townhomes, the well-located redevelopment promises a thoughtfully planned community amidst a rapidly growing submarket.

The client is an opportunistic, value-based developer with a goal of tackling the housing shortage that has been persistent in Boise over the past decade.  Taking advantage of Boise’s new zoning, which allows for higher density infill projects, this sponsor aims to continue to find under-utilized commercial and residential properties, primed for redevelopment.

LFB is actively building a programmatic relationship with capital for this client so they can continue to acquire and develop their extensive pipeline of future projects.