Eyzenberg & Company arranged a highly structured acquisition, recapitalization and construction financing package for a three-phase multifamily development project in Las Vegas, NV.
Challenges
The Sponsor was seeking to terminate his original role as a participating junior lender on a three-phase multifamily development project in order to purchase and develop the second & third phases independently.
The existing construction lender had control over all three phases with no pre-set release prices. The first phase was mid-construction, but out of balance loan in danger of not proceeding without a rebalancing equity infusion.
Sponsor was anticipating substantial profits from their participating debt position on phase one and was seeking to efficiently use those profits to capitalize the second and third phases.
Furthermore, Sponsor was several months shy of obtaining a building permit on phase two or a guaranteed maximum price construction contract.
