Creative Financing Options for Commercial Properties
Trying to find backing to fund your high-rise condo or hotel project can prove challenging, particularly when most lenders are unwilling to provide a construction loan until 75 percent or more of the project is under hard contract. Even then, construction loans underwrite only about 70 percent of the total building costs. That means developers must make-up the difference themselves, or take out another loan.
A recent article in the Las Vegas Business Press explores the creative financing used by Allure Las Vegas when funding its condo-hotel project. Mechanisms to fund the project included forming a consortium of partners, taking out a multi-million dollar loan with specific union labor stipulations, and digging deep into the pockets of joint-venture investors. To read more, click here .