The Real Deal New York

As bank loans dry up, condo developers are cobbling together funds any way they can

Capital stack for many of those projects often includes multiple tranches of sponsor equity, mezzanine debt, preferred equity, EB-5 funds and even crowdfunding
By Kathryn Brenzel | July 15, 2016 07:30AM

Capital-stackFrom the July issue: When it comes to condominium construction, the many tiers of equity and debt needed to get the job done have become all the more complicated.

As the amount of money that U.S. banks are willing to lend to developers has decreased tremendously in the past year — especially for ultra-luxury projects — those looking to build condos from the ground up must cobble together financing from a wider array of alternative sources. That includes additional equity partners, high-yield debt funds, hedge funds and foreign investors. [more]