Large Non-Recourse Construction Debt to 90% of Cost

George Smith Partners has identified a national lender providing senior and mezzanine ground-up construction debt to 90% of cost staring at $50,000,000. Focusing on industrial and retail developments in the top 12 MSAs, pricing on the senior tranche starts at LIBOR plus 4.25% to 60% of cost. A 30% mezzanine slice priced at 14% fixed from the same capital provider can be layered to provide up to 90% of the overall capital stack. This attains a blended cost of capital of 7.0% for Borrowers. Fully speculative industrial and pre-leased retail developments will be considered, with a loan structure that protects the Borrower from negative arbitrage on both tranches of capital.