MULTIPLE OPTIONS ON A TIGHT TIMELINE
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.
LOCATION
UNIT COUNT
YEAR BUILT
252-unit development project in Bentonville, Arkansas
Project was only 40% complete when the second phase fell through
MMG was able to run a 100 day competitive process for our client
We were able to capitalize the deal in about 100 days from start to finish, giving our client multiple competitive options. Our advisory approach empowered our client to select the choice that ultimately aligned best with their priorities.
Our approach allowed for our client to make the best choice to meet their goals. MMG leveraged our team and marketplace relationships to give the client multiple options, and paths to succeeding.
