A new developer encountered challenges while attempting to complete a 252-unit multifamily development project in Bentonville, AR. The project was only 40% complete when the second phase of the construction loan fell through due to changes in the market. With only a month’s worth of capital remaining, our client needed to find a solution urgently.

Luckily, our client had an incredible basis in the land, and rents have skyrocketed in downtown Bentonville, resulting in a 7.5% yield on cost. We found plentiful capital even in secondary and tertiary markets for multifamily developments with a strong yield on cost and a strong basis. We brought six partners to the table, offering our client a range of solutions to meet their needs.

It was important to our client to maintain as much ownership as possible without putting the deal at risk. Even though our client had never taken on outside capital, and even though this project was our client’s first multifamily development, we were able to get equity groups comfortable with this. With no option for the timeline to slip, surety of close was another important factor for our client.