Construction financing for a 24-unit townhome project
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Catalyst Private Credit > Construction & Land > Construction financing for a 24-unit townhome project
The situation
A builder with six completed infill projects had a serviced site in Edmonton's west end approved for 24 townhome units. The project was below the size threshold at which its bank would commit construction financing on a reasonable timeline, and the builder did not want to lose the building season.
The structure
Catalyst provided a land and construction facility funded in monthly draws certified by a cost consultant, with interest capitalized into the loan during construction. The takeout was planned from the outset through pre-sales and a conventional mortgage on any units held for rental.
The outcome
Construction completed on schedule. Twenty units sold before completion and the remaining four were refinanced into a rental portfolio, repaying the Catalyst facility in full.
Key terms
- Facility: land and construction loan, funded in draws
- Interest: capitalized during construction
- Project: 24 townhome units, west Edmonton
- Exit: pre-sales and rental refinance
Why it worked
What made this financing straightforward to approve and fund:
- A builder with six completed comparable projects
- A serviced, fully approved site with a realistic budget
- Cost consultant certification on every draw
- Takeout planned from the outset through pre-sales
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Solution:
Infill builder -
Funded:
June 28, 2024 -
Sector:
Construction & Land -
Term:
14 months -
Share:
Representative financings we have structured and funded.
Have a transaction that needs certainty and speed? Talk to the Catalyst credit team about how we would structure it.
