Mercury Capital Partners arranged a $4.35 million construction loan for Estero Oaks, a 14,000-square-foot retail center in Fort Myers, Florida, on behalf of a development partnership. A large credit union provided the loan, which closed in 45 days.
Loan terms
- 70% loan to cost
- Fixed rate in the mid-5% range, set at 130 basis points over the 5-year Treasury
- Five-year construction mini-perm, with two years of interest-only payments through construction and lease-up
Mercury estimates the all-in cost at about 180 basis points below the other options the sponsor had, with higher proceeds, for savings of roughly $400,000.
“We are pleased to have secured a financing solution aligned with the sponsor’s business plan,” said Michael Jaworski of Mercury Capital Partners. He added that the deal reflects continued lender interest in well-located retail developments.