AREC has successfully closed a $70 million first-lien loan as the lead lender for a Master Planned Community in Northern California. The loan is being utilized to replace the previous lender and finance the development of more than 1,400 entitled and partially developed lots.
The borrower faced challenges with the previous senior lender's mandated paydowns, resulting in impairments and restrictions on further land development. Our loan replaced the senior loan, paid off a second lien, satisfied accounts payable, provided capital to finish lot improvements for the remaining neighborhoods, and funded a 9-month interest reserve. Our affiliated debt fund demonstrated its ability to move quickly and close within 60 days.
Our team has originated approximately $800 million in land loans in the past twelve months. We are focused on providing acquisition, development, and construction financing on projects in high-growth markets across the U.S. with best-in-class builders and developers. If you are interested in learning more about AD&C capital availability for your project, please don’t hesitate to reach out to our team
