Construction

An Illinois-based developer turned to Pangea Mortgage Capital to finance the construction of a 49-unit, four phase luxury waterfront condominium complex in South Florida. After completing just two of the units in phase I, and spending close to $7M including site acquisition and preparation, the development team’s expected bank financing fell through. Without an ongoing source of funding, the majority of existing contractors walked-off the job, leaving the developer with a half-completed condo building — a sizeable hurdle to obtaining traditional financing.

PMC worked closely with the Sponsor to assess the transaction — evaluating current market conditions and remaining construction costs to gain comfort around the project’s completed value. Leveraging Pangea’s vertically integrated construction expertise, PMC served as a key point of contact for the general contractor throughout the diligence process; providing timely updates on the loan closing date and processing draw requests to-be-funded the date of closing, PMC ensured construction resumed as smoothly and quickly as possible.

To balance the needs of buyers with existing contracts, and ongoing construction difficulties, PMC structured a $5.5M revolving line of credit to provide the flexibility needed to complete the project’s first phase with an option to recycle the capital for the remaining phases. PMC also understood the cash-flow needs of the development team’s back-office operations and provided guaranteed payout rates to the developer upon the sale of each completed condo unit. With PMC’s financing solution, the developer successfully resumed construction and fast-paced unit sales.