Broadmark Realty Capital Inc., an internally managed secured real estate finance company, announced the origination of three short-term construction loans in the first quarter of 2021 totaling approximately $37.3 million. The loans include:
- $32 million to sponsor Melrose State Capital, LLC (“Melrose State”) to fund the vertical construction of Gateway Northbrook, a 68-unit townhome development in Northbrook, Illinois, a suburb of Chicago;
- $4 million to borrower Ironfield LLC (“Ironfield”) to finance the construction of Hanley Mini-Storage, a mini-storage unit project located in the booming city of Coeur d’Alene, Idaho; and
- $1.3 million to sponsor NewBright Homes, LLC (“NewBright”) for the construction of two high-end, single-family homes in Acworth, Georgia, which is part of the Atlanta metropolitan area.
Jeff Pyatt, President and Chief Executive Officer of Broadmark, commented, “As the nation continues to emerge from the pandemic, the U.S. housing market shows no sign of slowing down. Broadmark is committed to continuing to provide creative and flexible capital to finance well-located projects backed by high-quality borrowers in an effort to meet the elevated demand for housing in our target markets. As a reliable and efficient lender with a strong balance sheet, our pipeline continues to grow as we evaluate new opportunities.”
Chicago, Illinois Loan
The Gateway Northbrook townhome development is midway through construction, with five units already completed and sold. Sponsor Melrose State selected Broadmark for its creative financing package that will fund the completion of 17 units through phase one of the loan; once these units are completed and sold, additional funds will be provided to complete the remaining 44 units. The property sits on 5.37 acres and comprises 12 buildings, offering city-inspired living in a suburban setting. Its expansive floorplans, designer finishes and urban-influenced touches provide residents with high-quality amenities along with the benefits of maintenance-free new construction. Gateway Northbrook resides within proximity to numerous dining and retail offerings in addition to the Metra, Northeast Illinois’ commuter rail system