Developer required a higher leverage construction loan to complete a specialty retail center on part of a larger parcel of land he controlled.  On a standalone basis, the transaction was difficult to finance given leverage, specialty nature of tenancy, and fact that construction had started (developer assumed sale of another property would provide source of funds for construction completion without bank financing).

Red Fox was able to provide a $15,600,000construction loan utilizing other real estate assets the borrower owns to bridge the underwriting gap.  Borrower pledged unencumbered land adjacent to the center (multi-family parcel) as well as a ground-leased big box space.  The additional income from the leasehold, as well as the overall additional value pledge; facilitated the transaction.  

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The primary source of repayment for this transaction is a permanent market refinance of the retail center.  As a secondary source of repayment, the loan is secured by other real estate assets owned by borrower, which could be liquidated or re-financed to pay out Red Fox.