First National Financial LP

First National delivers security-based facility for condo development

Dec 22, 2016

Deal snapshot:
First National delivers security-based facility, enabling a long-standing client to build two condo towers simultaneously, despite only 40 per cent advance sales in phase two.  
Client objective:
Looking to tackle his first condo development after a successful 50-year career in industrial real estate, the client knew that it would be more efficient for future tenants moving in if both towers were built simultaneously (the two sites shared a parking facility on a structural podium). 

The solution approach:
The First National team saw an opportunity to both support a long-standing client’s evolution and to set a precedent in the industry. It was a matter of evaluating the client request properly and figuring out how to use First National’s strengths – service, expertise and speed – to deliver.  
Structuring the solution:
The client wanted to secure up to $18 million in financing to build phase two. The First National team tapped its network of investors, ultimately proposing a facility that took security over six industrial buildings and five condo units within the client’s portfolio. In the end, the client received the requested financing amount and avoided the consultant fees ($40 - $60,000) typically associated with construction loans. The deal closed in two months, despite its technical complexity.

Formula for success:
The trust and honesty that have characterized this client relationship for more than 50 years gave the client faith in First National’s approach to this deal. It took ingenuity to create a facility that provided ample funds, and First National was also able to execute quickly and make it convenient and easy for the client.   The key idea: With the stakes very high – the profitability of the entire project rested in being able to build both towers simultaneously – First National created a deal that worked for the client and the investor. The client got the financing that he needed to fulfill his vision in a way that positioned both him and First National as trailblazers. 

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