HKS Capital Partners has negotiated a $24.6 million dollar ground-up construction loan for a three story multi-residential complex featuring 165 units.
The proposed 132,348 s/f development site — to be called Barnbeck Place Apartments — is located in Brookfield, Connecticut, next to a health facility, medical offices and other amenities.
The 24-month loan rate is below three percent (250 over the one month LIBOR with no floor.) The loan amount was at 80 percent loan to cost, with the remaining 20 percent equity portion primarily coming from the borrowers appreciated land value — an uncommon occurrence, especially outside the New York City area, according to HKS Capital partners co-founder John Harrington who negotiated the transaction.
He said the lender considered the appreciated land value of the borrower’s original acquisition of the property in the early 1980’s.
“The borrowers own and operate over a thousand rental units in this market, they have a strong understanding of the local economy and rental market which told them that they see a growth opportunity for this type of asset in this area,” said Harrington.