Case Study: $35MM Single Family Rental Project
Development | Myrtle Beach, SC
Structured and placed a first mortgage construction loan to build an initial 100 units in a 130-unit community.
Sponsor intended to build a single-family rental housing community at a famous Legends golf course in Myrtle Beach. While most of the surrounding properties are short-term rental, the sponsor felt comfortable introducing the new product given recent trends of consumers relocating to suburban areas. The COVID-19 pandemic proved to be the greatest challenge for the transaction, with many capital providers pausing or increasing pricing while reducing leverage.
Eyzenberg & Company identified a specialized lender experienced with the development strategy and product. Structured a non-recourse senior-secured revolving facility that provided maximum leverage for the first two phases of the project, enabling the developer to seamlessly order and deliver houses to the site. Facilitated and managed a complicated closing process to avoid construction and delivery delays.