Case Studies >Denver Townhome Project
Denver Townhome Project
The subject loan is for the acquisition and construction of a 31,531 square foot parcel which includes approved building permits for 8 townhome units, and the vertical construction of 8 townhome units. The loan amount is $5,050,000 and the appraised as-completed value is $7,800,000, with a loan to value ratio (LTV) of 64.7% [as of the approximate date of initial funding]. Consistent with BRMK’s lending practices, the entire loan amount is not released at closing. Funds are disbursed as construction draws as the project progresses. We believe BRMK’s draw process is detailed and includes third party inspections and lien releases through each stage of construction before additional funds.
The property, located in S*Park, also known as “Sustainability Park”, is the last buildable space located within the S*Park urban community. The seller developed the rest of the S*Park community except for this townhome parcel and had been looking for the right builder to complete the community.
The builder describes S*Park as a new millennium take on condo living -- a prototype of an “urban agrihood” community, with progressive design incorporated into the built environment, amenities and lifestyle. Ninety-one spaces ranging from contemporary studios to three-bedroom condos are contained in the mixed-use development that encompasses an entire city block. The community shares the block with a sushi restaurant (Uchi), a yoga studio that includes a vegetarian/vegan cafe and juice bar (Lacuna Juice and Yoga), and a bakery anticipated to be announced soon. The contemporary concept centers around a private park and exposure to nature. Each unit offers indoor-outdoor connectivity, reflecting the builder’s message of sleek simplicity of sustainable living.
The property will include 8 townhome units that are comprised of two 4-plexes. Each townhome unit will have 2,414 square feet and include 3 beds, 3.5 baths, an attached 2-car garage, a rooftop deck and front patio.
Each unit is expected to sell for $975,000, a price point that the builder believes is consistent with the neighborhood and the type of property that is aimed at appealing to professionals looking for quality of life within a short commute to downtown Denver.
As of the date above, construction is progressing as planned, the borrower has completed the foundation, inspections have been completed and a construction draw has been released.
Since 2016, the borrower has completed many projects financed by a BRMK predecessor lending company, including urban infill lots to develop residential and commercial projects. His track record has been strong and we are pleased to finance his latest project.
The impact of the COVID-19 pandemic and the measures implemented to contain the spread of the virus have had, and are expected to continue to have, a material adverse impact on the real estate lending business and results of operations of Broadmark Realty and the Private REIT, including the ability of borrowers to complete real estate projects and make timely payments of principal and interest on loans
By filling out the form you agree to receive a monthly newsletter. You can unsubscribe at any time.