Scottsdale Developer Secures Tricky Construction Loan for Apartment Project

A Scottsdale, AZ-based commercial developer, Silver Creek Development, has obtained $57.9 mil in construction financing for a 187-unit multifamily development in north Tempe. The mid-rise project  known as Blue at Eastline Village, will be located immediately adjacent to a Valley Metro light rail stop, offering residents convenient access to Downtown Tempe, Arizona State University, Sky Harbor Airport, and downtown Phoenix. 

Antonio Hachem, Wendy Wang, Cornelius Baliukonis and John Choi with George Smith Partners arranged the non-recourse, 90% LTC construction loan, which includes a participating feature. This unique structure allows the lender to share in profits with Silver Creek Development in exchange for the high leverage financing. The five-year, interest-only loan has a fixed rate of 4.25%. 

The construction budget grew significantly during the longer than expected entitlement and permitting process. They were able to lock in a final loan amount that was nearly 40% higher than that of the original loan application in 2021.