Throughout the Philadelphia area there is a demand for real estate. The way in which the property will vary depending on a variety of factors including where it is located. In many areas, mixed-use developments are popular. This type of development was recently completed in Philadelphia’s Center City. As is the case with many developments, the funding of the construction was a major component.
Recently, a construction loan that was previously in place to help fund the project, was refinanced. The new loan, for $45 million, is a fixed rate loan that will last for seven years. A third party arranged the refinance through Webster Bank.
The loan will be used to cover the costs associated with creating 180-units out of the former office space. The construction has transformed the 16-floor building into 8,887 square feet of retail space on the ground floor and 101,628 square feet of residential space.
Regardless of the size of the loan needed to complete construction on a parcel of real estate, in any situation where financing is necessary to make a commercial development work, there are multiple issues that could arise. The failure to adequately address them could threaten the livelihood of the project.
Because of the importance financing often plays in projects of this nature it is important that all relevant details are taken into consideration when making decisions and deciding what course of action to take. To accomplish this goal is it generally advisable to work with a lawyer who has handled these types of matters in the past.