Brady Larsen helped his client close on a participating construction loan on The Lofts at Rivers Edge; a 247-unit multifamily development located in the heart of Provo, UT. The loan was structured such that the borrower only had to contribute 10% equity upfront while the participating life insurance company contributed the remaining 90% (on a loan to cost basis). The Term was fixed for 4-years, Interest Only, at a very attractive 4% rate (accruing during construction), with a 6.5% IRR lookback payment due at loan payoff. Prepay flexibility was built in over the 4-year term as well. Lender is required to be taken out at the end of the 4-years via a sale or refinance.
