If you’re reading this, you are likely tired of hearing about COVID-19. Unfortunately, even the strongest willed cannot ignore the lasting effects that the pandemic having on the commercial real estate industry, especially in the construction sector. Last year, there were complete shutdowns of many job sites, and many on-site workers were not comfortable leaving their families to keep active projects fully staffed.
The lasting result is that many projects in an otherwise extremely healthy and robust market exist everywhere, even in Boston and Miami, two cities that have weathered the storm quite well.
FinanceBoston and our affiliate, FinanceMiami have years of experience in providing advice as to how to handle these situations. We have helped many clients restructure their behind-schedule and over-budget construction loans by leveraging our deep lender relationships and intimate market knowledge to restructure the debt and equity, and to get the developer back focused on proceeding with the project rather than where the capital is going to come from.
There are numerous strategies, including re-valuations to increase the senior debt amount, slotting in a tranche of mezzanine financing, and providing an equity injection to recapitalize the project, among others. These strategies can be employed individually, or in concert with one another, based upon the current status of the project and the developer’s needs.
While I would love to dive into deeper details here, the difficulty lies in the fact that every real estate transaction is unique and different, and the only way to figure out the appropriate strategy for your situation is to have a discussion.
FinanceBoston Provides Real Estate Capital and Advisory Services to Investors and Developers.
FinanceBoston has the experience, relationships, and expertise to get you the most advantageous financing solution. Contact us today, or Request Financing here.
