$10,200,000 FIXED RATE Construction Loan for the development of 10,000 sq. ft. of in-line retail space in King of Prussia, Pennsylvania

Real Property Capital Inc. (RPC) recently closed $10,200,000 in construction financing for the ground-up development of 10,000 sq. ft. of in-line retail space with a drive-thru-lane located in King of Prussia, PA. The first mortgage features a 24-month interest-only construction period followed by a 5-year permanent loan on a 25-year amortization. The rate for the initial 24-month construction period is fixed at 6.5%, after which it converts to the five-year treasury plus 225bps for the permanent loan.?

Due to many factors, this transaction took a long time to close.?Along the way, the tenant prospects changed and the lead tenant folded.?Undeterred, the lender closed with no pre-leasing and with collateral that is a condominium parcel that was part of an existing hotel that will be repurposed into a new hospitality concept.?As part of the underwriting, we carefully segregated the site-work and other expenses between the development components so as to optimize financing, and then identified a lender offering the most competitive terms as well as flexibility to make a complicated development with shared elements and easements work. Achieving more aggressive terms for the retail portion of the development outside of the loan for the hospitality portion?was a critical objective of our client, one of the leading hospitality development and management companies in the Mid-Atlantic region.

Real Property Capital, Inc. is a full-service mortgage banking firm with offices in Conshohocken, PA. We have an impressive track record of arranging a diverse array of customized debt and equity financing for income as well as “for-sale” commercial real estate investments. Due to our broad and unique network of capital sources and our unparalleled customer focus, we consistently deliver exceptional results that exceed our clients’ expectations.?