Case Study: $94MM Condominium | Development | St. Petersburg, FL

Eyzenberg & Company arranged construction financing for a new 88-unit condominium tower in downtown St. Petersburg, FL.   

Challenges

The sponsor is a growing developer with extensive experience in the St. Petersburg market. With the project budget in a constant state of flux due to increasing construction prices from Covid, inflation, and geopolitical issues in Europe, flexible financing was needed that could cover cost overruns and bridge gaps within the capital stack. Additionally, the sponsor needed a debt provider that would allow future sales deposits during construction to be utilized as equity in the capital stack.

Solutions

Eyzenberg & Company arranged construction financing that allowed the developer to use existing sales deposits as equity in the capital stack. To bridge the gap created by future sales deposits during construction that were not already in hand, Eyzenberg structured an increase in loan proceeds that recognized fifty percent of the future sales deposits and was secured by a letter of credit that could be drawn upon if deposits did not arrive to repay loan proceeds. The non-recourse high-levered construction loan provided the proceeds level necessary for the developer to effectuate their business plan.