The subject loan is for the vertical construction of an 8 unit multifamily development in Tacoma, WA. The loan amount is $1,153,000. The appraised as-completed value is $1,800,000 with a loan to value ratio (LTV) of 64.0%. Consistent with Broadmark’s lending practices, the entire loan amount is not released at closing. Funds are disbursed as construction draws as the project progresses. We believe Broadmark's draw process is detailed and includes third party inspections and lien releases through each stage of construction before additional funds are disbursed.

The subject project will consist of four detached, 3-story duplex buildings. Each building will contain a 1-bedroom unit on the first floor, and a 2-bedroom unit on the second and third floors. The size and target rent of each unit is consistent with the neighborhood: The 1-bedroom units will be 442 square feet with a target monthly rent of $1250, and the 2-bedroom units will be 1,120 square feet with a target monthly rent of $1650. The complex will include paved parking stalls and a common area courtyard.

The subject project is in McKinley Hill, one of Tacoma’s oldest neighborhoods. It is home to quaint shops, hip bars, historic buildings and features sweeping views of Commencement Bay. The area has been revitalizing over the past 5 to 10 years and includes a mixture of older homes and more recent development.

The supply of rental units in the Tacoma market has not kept up with demand. The current vacancy rate is 3.8% for all market rate units and 1.3% for all market rate units built after 2010, currently among the lowest in the Puget Sound region.

The borrower is an experienced real estate developer and a repeat customer of Broadmark. This is his fifth project using Broadmark financing. He has a strong balance sheet, anexcellent track record and we are pleased to be financing his latest project.