Case Study: $92MM Resort | Development | Destin, FL

Structured and arranged a construction loan to develop Phase 1 of a larger five-phase resort along the Gulf of Mexico in Destin, Florida. The Phase 1 building is designed as a 170-key hotel and conference center with private beach access in front of the adjacent State Park Reserve. 

Challenges

The resort's location in a non-primary market, and EB-5 component with ongoing fundraising efforts, made the funding opportunity challenging to many local balance sheet lenders. Furthermore, the uncertain release timing of the EB-5 funds required the sponsor to implement a pari-passu funding structure with the lender.

Solutions

Identified a lender who was familiar with the market and was able to get comfortable with the underlying collateral, liquidity and experience of the sponsorship team and hotel operator. Crafted a creative financial solution that enabled the lender to engage in a pari-passu funding structure without additional cash requirements from the sponsor.