One Loan, Four Parts: A Win for a New CRE Customer

A first-time customer at our bank, this Florida-based real estate company primarily focuses on providing neighborhood multifamily housing throughout central Florida. Their latest construction project—four multifamily buildings with 24 units each—would require just over $21 million to complete.

First American Bank was ready to help. We provided the full amount over a two-year term, breaking down construction into four phases—one for each building. Phasing the project was implemented to maximize the underwriting loan to cost as well as loan proceeds. The borrower needs to meet specific performance metrics for construction and leasing on each building before gaining access to funds for the next. Access to a post-construction extension was also dependent on specific qualifying criteria.

These loan requirements allowed us to bring this first-time customer’s project to life, while also protecting our bank during each phase of construction. This strategic approach also enabled us to provide fair pricing—a major win for both parties, especially in an environment where some banks are reticent about large CRE deals.