Your bank is at 57% of cost. The gap is the equity you're out raising.
Debt funds are writing 70 to 75% of cost, non-recourse. We take Texas projects to the lenders who go there.
The bank's number is not the market's number. Banks are at 55 to 65% of cost, full recourse, for sponsors with three comparable completions. Debt funds go to 75, non-recourse, and price the risk instead of declining it. On a $50m project that is $6m to $9m less equity to raise.
More loan, less equity
The three-completions test is a bank rule, not a market rule. A debt fund doesn't need it.
Term sheets, side by side
Leverage, rate, recourse, reserves, extensions, fees, and what each one means for your equity.
Through to closing
Lender diligence, appraisal, third-party reports, loan documents. We stay on it until it funds.
Where the market is, dated and sourced.
Every number from a public source, updated monthly. Ranges are ranges. Where you'd land inside one is a conversation.
The terms on this site come from public sources and are updated monthly. Check them.
- 10-year TreasuryUS Treasury, 11 Sep 20264.96%
- 5-year TreasuryUS Treasury, 11 Sep 20264.78%
- SOFRFederal Reserve Bank of New York, 11 Sep 20263.62%
- PrimeFederal Reserve, Sep 20266.75%
- Bank construction, recent closingsAnnounced closings, Jan to Jul 202660 to 80% of cost, 6.25 to 6.75%
- Debt fund construction, recent closingsAnnounced closings, May to Jul 202670 to 88% of cost, non-recourse
Senior construction debt in Texas. Not equity, not advice, not securities.
The terms on this site come from public sources and are updated monthly. Check them.
No retainer. If the loan does not fund, you owe nothing.
Joseph Eun
Capital markets in Australia, equity deals to A$1bn. KPMG before that, law and accounting before that. Taking a construction package to eight debt funds and running them against each other is the same job with different paper.
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