Bison Closes Acquisition and Development Loan for 100% of Project Cost
|ST PETERSBURG, FL – Bison Financial Group, a real estate advisory firm based here, announces the closing and funding of a high-octane credit facility for a developer of single tenant net leased properties. The loan covers 100% of the developer’s investment required to acquire the land, obtain approvals, entitlements, permits, horizontal construction costs, and cover soft costs.
The tenant is Wawa, one of the nation’s fastest-growing gas/convenience store chains. Wawa is a privately owned company with 750+ locations. Wawa is based in Eastern Pennsylvania with roots dating back to 1803.
According to Bison co-founder David Repka, “This is the second loan we’ve closed with this developer that was underwritten to 100% of the all-in project cost. When compared to traditional bank financing which only provides 75% of cost, this structure provides massive scalability to our developer client’s business model.” Repka continues, “high-octane financing like this allows our client to invest their capital in the risky pre-development phase placing parcels under contract, negotiating leases with tenants, paying lawyers, engineers, and consultants fees required to obtain all government approvals to build a project like this.”
|Once the deal has been de-risked, pre-development capital is returned at the closing of the loan so the developer’s coffers are re-charged and they can do it again. For a prolific developer with dozens of properties in the pre-development phase, funding like this makes the difference between having tens of millions of dollars invested in projects under construction or no capital invested once the project has been de-risked.
The investment group procured by Bison does not share in the equity on the deal or have profit participation, just a strict coupon rate of interest. This was Bison’s 20th closing with the key sponsor.
Let us know if you are a developer with more opportunities than your current capital base can cover. The principals of Bison Financial Group can tailor a win-win transaction to bring up to 100% loan to cost financing for the right developer and tenant.