Capital Spotlight – Highlighting featured capital investors. We regularly publish the detailed criteria of our most unique real estate capital sources.
Bank Construction to Mini Perm for Industrial and Multifamily Assets in the Southeast
With cost of capital and construction expenses still at record highs, most new development projects remain difficult to pencil. For real estate developers focused on multifamily and industrial assets, VRC is actively sourcing capital solutions that provide the competitive edge needed to move projects forward. Valencia has recently identified a regional bank serving the Southeast that is offering a construction-to–mini-perm loan product for well-located multifamily and industrial developments, giving borrowers flexibility, certainty, and a trusted banking partner.
Southeast-Focused Construction Lending with Submarket Discipline
This lender targets mid-to-large-scale multifamily and industrial developments in the Southeast, including Atlanta, Charlotte, and Nashville.
Flexible Loan Structuring: Construction & Mini-Perm Financing
This lender provides structured senior debt, offering construction loans with interest-only periods that seamlessly convert into mini-perm financing, reducing refinancing risk for sponsors.
Key Loan Terms:
- Loan Amount: $7MM – $30MM; can go up to $60MM with a participant bank
- Loan Type: Construction to Mini-Perm
- Loan to Cost: 65-75% (subject to DSCR thresholds)
- Interest-Only Term: 24-36 months interest-only, converting to P&I with extension options
- Loan Term: Up to 60 months
- Amortization: 25-30 years
- Debt Service Coverage: 1.20x – 1.25x DSCR (stabilized)
- Interest Rate:
- Floating: 1-month SOFR + 225-275 bps
- Deposit Relationship Incentives: More aggressive pricing possible with depository relationships, though not required
Recourse & Risk Mitigation
While generally recourse-based, this lender offers completion, and repayment guarantees with potential for burn-down upon stabilization. They are relationship-driven and prioritize experienced developers with a strong track record in multifamily and industrial development.
If this capital source may be of interest, book a call to discuss a potential capital arrangement.
| Capital Types | Senior Construction & Mini-Perm Debt |
| Geography | Southeast U.S. (Selectively Texas & Arkansas) |
| Asset Classes | Multifamily, Industrial |
| Loan Structure | 24-36 months I/O, converting to P&I upon stabilization |
| Debt Service Coverage | 1.20x – 1.25x DSCR (stabilized) |
| Loan Pricing | 1-month SOFR + 225-275 bps |
| Recourse | Completion and repayment guarantees; Burn-down upon stabilization |
| Check Size | $7MM – $30MM; Up to $60MM with a participant bank |
| Closing Timeframe | 60-90 days subject to market and deal profile |
If this capital source may be of interest, book a call to discuss a potential capital arrangement.
Read our last Capital Spotlight: “Institutional-Scale Private Credit Fund Structuring Flexible Bridge Facilities”