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$2.8M Mezzanine Loan
Fident Capital secured $2.8M of mezzanine financing for Campus Walk Condominiums, an 88-unit residential project consisting of seven four-story buildings immediately adjacent to the University of Arizona’s western border and within walking distance to the popular University Avenue. Campus Walk was a well-timed and substantial for-sale offering in the chronically undersupplied university area submarket.
Challenges to the proposed condominium conversion included articulating the vibrancy of this niche “kiddie condo” and investor offering in a marketplace faced with increasing inventory levels and slowing absorption rates. Further challenges included a mid-school-year acquisition and high occupancy rates until year end and proving the retail value of the converted property in an area with scarce direct comparables.
Financing was provided through a high leverage mezzanine structure which provided pricing significantly below typical joint venture equity rates. The loan was non-recourse with the exception of standard carve-outs. No presales were required prior to close.