Funding Purpose
Tauro Capital Advisors, Inc. was engaged on an exclusive basis to source construction debt for two retail development sites in the southwest.
Property Description
The properties to be built are at varying stages of development. Each site was either preleased or under contract to sell to the end user.
Sponsors
The Sponsor is a development group that specializes in built-to-suit development, investment, acquisition, and ground lease for retail.
Challenges
- Both projects were refinances with varying levels of work completed which presented budget and title challenges.
- One property was cross-collateralized with an investment property.
- Cyber attacks on our title company the day before target closing.
Solutions
- Tauro’s experience in the space helped tighten up budgeting and accounting of costs spent to date, current outstanding invoices, and future draws.
- Tauro sourced a separate lender for a total of three loan fundings in order to facilitate the two development sites.
- Tauro facilitated the transfer to another title company in order to close the first two transactions prior to the new year.
Funding
- Loan To Cost/Value: 90%/75%
- Recourse: Completion & Repayment
- Make Whole: 4 Months
- Close Date: 12/29/2023 & 1/3/2024
