A construction project that was set to break ground in early 2020 is finally getting off the ground thanks to a bank loan arranged by JD Stettin of Carnegie Capital. Set in the Dallas-Fort Worth metro area, the cottage-style community will feature 48 assisted living and 16 memory care units. It is the second ground-up construction project for the undisclosed sponsor.
To finance the development, Mr. Stettin arranged a $9 million loan from a North Texas regional bank with a five-year term and two years of interest only. That comes to 65% loan-to-cost and under 50% loan-to-value, putting the construction cost at $215,000 per unit, which was fixed with the general contractor. Seven banks and credit unions competed for the loan, with the winner offering a fixed rate of 4.25% and a fully prepayment loan at any time without penalty.
