Construction takeout financing for Ellie Jean has funded
The Ellie Jean is a newly constructed 30-unit multifamily property located in the John's Landing neighborhood in Portland, OR. McBride Capital placed fixed rate bridge-to-perm financing, which took out the construction loan prior to stabilization. The 7-year loan features two years of interest only payments, followed by a 30-year amortization schedule, and an interest reserve to cover debt service during lease-up. At stabilization the interest rate floats down 50bps and the sponsor has the opportunity for an earn out.
This loan program is a great opportunity for developers to get off of construction loans at certificate of occupancy, avoid interest rate risk during lease-up, and take advantage of an initial interest only period. The loan also provides a weak step down prepayment penalty, which is ideal for developers who have interest in opportunistically selling during the term of the loan.
The Ellie Jean is just minutes from downtown Portland and is walking distance to popular Willamette Park, Zupan's Market, Urbana Market and many boutique restaurants and shops. The project features secured access entry way, bike storage room, and is elevator served.