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PROGRAMS / GUIDELINES / PARAMETERS
1 Index used for adjustable rate
2 Max LTC (loan-to-cost)
3 Max LTV upon completion
4 Construction only: Max term (years)
5 Mini-perm available
6 Construction to permanent available
7 Participating construction
8 Fannie Mae DUS construction/perm
9 SBA
10 Recourse required
11 Subordinate financing allowed
12 On-time completion bonus
u
LOAN SIZE
New Construction
Rehab/Renovation
COMPANY NAME
1
2
3
4
56789101112
Min
Max
Min
Max
Seattle Funding Group Ltd. n o p
800-974-8628
Fixed
75
65
24
Y
100K
2M
none
none
CO HI NV OR UT WA
Properties: All property types considered
Seattle Funding Group of California
858-751-0556
Fixed
75
65
24
Y
300K
3M
none
none
CA
Properties: All property types considered
Stirling Bridge Group
800-756-8170
65
60
100K
15M
100K
15M
INTERNATIONAL
Properties: Apartments, condos, offices, hotels, industrial parks, warehouses, all construction projects o
Summit Financial and Investment
Group LLC
800-649-0311
Open
80
75
36
YYY
Y
4M
none
4M
none
INTERNATIONAL
Properties: All property types considered
The Pan American Fund
954-370-0600
Hard Money
100
65
36
YYY
YY
500K
100M
500K
100M
NATION WIDE except: HI
Properties: Commercial properties. D.I.P. financing now available. We buy performing and nonperforming loans. mm
Valiant Funding
877-257-1602
Libor o
80
60
2
YY
YYY
1M
100M
500K
100M
NATIONWIDE except: FL NJ NV
Properties: No residential SFR development. Apartments OK. No upfront fees
*
†
60
Y
Y§ Y
Y
5M
none
10M
none
Wilkinson Peabody et Compagnie ns n a e om a e
315-280-6508
INTERNATIONAL Properties: Some options noted are country-dependent and need to be reviewed on a case-by-case basis. Please call for details.
Index used for adjustable rates for construction only case-by-case basis † case-by-case basis § with banks, not clients
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Tell lenders you found them in Scotsman Guide
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Scotsman Guide makes every attempt to ensure the quality of matrix and directory information, which all listed lenders verify or update monthly. Because of the production cycle and dynamic nature of the industry, loan product
terms and availability may not reflect the latest changes. Please contact lenders directly for the most-recent program details. If you believe data is inaccurate or misrepresented, please e-mail: matrixfeedback@scotsmanguide.com.
engage in any high-risk transaction in
today’s economy.
Consequently, from equity and
lending perspectives, there are fewer
capital sources for brownfield-redevelopment projects, which typically
depend on either private-lending capital or traditional private-public financial partnerships. As such, it can be
extremely difficult for brokers to get
deals done and for many of their clients’ remediation or redevelopment
efforts to reach completion.
Furthermore, “golden egg” projects — i.e., contaminated properties
that have low cleanup costs and high
land value — are increasingly harder
to come by. Brokers may therefore
see their developer clients taking on
more-challenging projects than they
might have considered previously.
Often, the biggest obstacle in getting financing for brownfield projects
is establishing a sound exit strategy.
Brokers and their clients, along with
all other parties in the brownfield-redevelopment process, must understand that obtaining financing in poor
market conditions is still predicated
on basic real estate investment criteria, the most important of which is the
land’s proposed use after redevelopment. In other words, the property’s
end use must make sense.
Also, projects that address demand
and have strong prospects for permanent financing have a better chance
at funding than those that may not
break into the brownfield-lending
industry.
For one, municipalities increasingly
look at brownfield-redevelopment
projects more favorably because
they recognize that they’re economic
drivers for communities. By encour-
“Despite the market slowdown,
there is good news e
for brokers wishing to break into the
brownfield-lending r g industry.”
make sense in today’s market. For
example, a project that transforms
a dilapidated factory into affordable
housing is likely to receive a Federal
Housing Administration construction
loan upon completion.
The good news
Despite the market slowdown, there
is good news for brokers wishing to
aging smarter land use, creating jobs
and building healthier communities,
brownfields have an inherent economic dividend.
Another positive sign is that envi-ronmental-lending institutions are
in relatively good shape and are still
active in the market. Although credit
markets are tight, many developers
view the market slump as a prime
opportunity to buy brownfield properties, obtain government assessments and cleanup funds, and prep
the properties for redevelopment
upon market recovery.
Additionally, public funding — such
as tax credits, bonds and other incentives — are more readily available for
brownfield projects that make economic sense. Tax-increment financing (TIF), for example, enables cities
to finance debt for new development
projects by setting aside future tax
revenues within a defined district
for debt repayment. Cities, in turn,
can use TIF revenues to reimburse
developers for costs related to site
preparation, which significantly alleviates the burden on city budgets.
Currently, TIF is hard to come by, however, because the compression of real
estate values has eroded the source
of repayment.
Ultimately, brokers will see that creativity is the key difference between
successful brownfield redevelopment
and a property that continues to be
underused. Innovative financing,
cleanup and redevelopment solutions
must be designed to address a property’s specific challenges. •
