Multifamily Development Near Sloans Lake Secures Additional Construction Financing
To help bridge a financing gap caused by the COVID-19 pandemic, developer Highland Development Co. has secured $9.3 million in financing for Signalmen Apartments, a 52-unit multifamily project in Denver’s West Colfax neighborhood. Tributary Capital arranged an $8 million construction loan through First Western Trust with a 75% loan-to-cost ratio and provided $1.3 million in preferred equity to enable the project’s groundbreaking earlier this spring.
“Acting as both a debt advisor and preferred equity partner, we’re proud that we were able to help Highland finance this project, setting up a new housing development in an in-demand time and place,” said Jake Meilach, managing partner of Tributary Capital. “The agility and experience of our team allowed us to move quickly and nimbly to find the right solution for them.”
Tributary was approached by HDC to help bridge a financing gap on Signalmen Apartments caused by the COVID-19 pandemic. HDC had previously secured financing for the project, consisting of a construction loan and private equity, but COVID-19 drove up construction costs and slowed timelines, causing the need for an additional $2.4 million to meet the new project cost. Tributary was able to secure a new construction loan with a more favorable loan-to-cost ratio, which in turn reduced the need for preferred equity, which Tributary was able to provide.
“We are excited to add another housing option to the Sloan’s Lake area where the current housing options have increasingly priced folks out. Signalmen Apartments offers residents the chance to live big without the big rent check,” said Paul Malone, president at HDC. “The units are designed with floor-to-ceiling cabinetry to make sure everything in your home has its place, along with extra storage offered in the building. Residents can enjoy a taste of the outdoors with bolt-on balconies and fenced-in yards, a great way to take advantage of the 300 days of sunshine in Colorado.”