Vertical construction with release pricing, inventory loans on finished unsold units, and conversion.
For-sale residential is underwritten on the sellout, not on a rent roll, which makes release pricing and the absorption assumption the whole negotiation. Ground-up and vertical construction including mid-rise and high-rise, condo inventory and unsold-unit loans, bulk purchase and deconversion, and conversion of apartment, hotel or office stock.
12 programs placed on this asset class, with the published size range on each. Everything here is business purpose, written to an entity, non-owner-occupied.
| Program | What it covers | Size |
|---|---|---|
| Condo Development & Inventory | Ground-up and vertical construction including mid-rise and high-rise, condo inventory and unsold-unit loans, bulk purchase and deconversion, conversion of apartment, hotel or office stock, non-warrantable and single-unit financing, and end-loan and presale takeout at certificate of occupancy. | $2M to $200M+ |
| Condominium & Townhome Construction | For-sale residential construction with release pricing tied to unit closings, plus condo inventory loans on unsold units after completion. | $2M to $150M+ |
| Condo Inventory & Sellout | Loans against finished, unsold units that pay off the construction lender and release units as they sell. | $2M to $100M+ |
| Condo Inventory / Sellout Financing | Developer with unsold condo units and TCO or CO in hand. Bridge financing to carry remaining inventory through sellout. | $1M to $75M+ |
| High Loan-to-Cost Ground-Up | Up to 80 percent of cost for hotels, multifamily, build-to-rent, senior housing and mixed-use, including sponsors whose land is owned free and clear and first-time developers with a qualified builder in place. | $5M to $300M+ |
| Construction Completion Loans | Projects 65 to 99 percent built that ran out of money: cost overruns, a construction lender that stopped funding, contractor liens, or a partner who walked. Proceeds finish the building and retire the existing construction loan. | $1M to $100M+ |
| CO Takeout & Pre-Stabilization | The gap between certificate of occupancy and stabilized numbers, where the construction lender wants out and the perm lender wants twelve months of history. Lenders who will fund at CO on an unstabilized hotel with no trailing operating statements. | $1M to $100M+ |
| Adaptive Reuse & Conversion | Office, hotel and institutional buildings converted to residential. Underwritten on the completed use rather than the current one. | $2M to $150M+ |
| Commercial Ground-Up | New multifamily, hotel, office, industrial, retail, mixed-use, and ALF projects. For experienced sponsors looking to build from the ground up. | $1M to $300M+ |
| Mezzanine Debt | Gap financing behind the senior loan. Second position capital for higher leverage deals when the first mortgage isn't enough. | $1M to $100M+ |
| Preferred Equity | Not debt. An equity position with a preferred return. No intercreditor agreement required, which means faster execution than traditional mezzanine. | $1M to $70M+ |
| Pre-Development / Entitlement Capital | Capital to carry a project through zoning, permitting, and entitlement before breaking ground. Higher risk tolerance lenders who understand the timeline. | $500K to $30M+ |
What condominium loans do you place?
Ground-up and vertical construction including mid-rise and high-rise, condo inventory and unsold-unit loans, bulk purchase and deconversion, conversion of apartment, hotel or office stock, non-warrantable and single-unit financing, and end-loan and presale takeout at certificate of occupancy. $1,000,000 to $200,000,000.
What is a condo inventory loan?
A loan against finished, unsold units that pays off the construction lender and gives the developer time to sell through rather than discounting into a forced sale. Typically written once a temporary or final certificate of occupancy is in hand.
How does release pricing work?
A release price per unit is fixed at closing in the loan documents. As each unit closes the agreed amount is paid and that unit comes off the lien, so the sellout funds the paydown rather than requiring a refinance.
Do you finance condo conversion?
Yes. Apartment to condominium and the reverse, and hotel or office stock converted to for-sale residential, underwritten as conversion rather than as an exception to a construction program.
Can you finance a non-warrantable condo?
Yes. Non-warrantable and single-unit financing is available where agency guidelines fail on owner-occupancy ratio, investor concentration, litigation or commercial square footage.
What does a condo file need to be priced?
Location, unit count and mix, total project cost split into land, hard and soft, the loan amount requested, the sellout schedule with pricing per unit, presales under contract with deposits, certificate of occupancy status, existing debt and maturity, and the absorption assumption.
An offering memorandum, budget or term sheet in hand is the fastest way to start. Anything you do not have yet can be left blank.