Tower Capital recently arranged bridge acquisition financing on behalf of a developer for the purchase of 79-acres of pre-development land in Pagosa Springs, CO. The future master planned development is planned in multiple phases, and the sponsor is looking to commence Phase I as soon as possible. The total project will ultimately consist of thew following:
Pagosa Springs is a small town of approximately 14,000 people known for its natural Hot Springs. Pagosa Springs is one of the most affordable mountain towns in Colorado. Comparable mountain towns such as Durango, Ridgeway, and Steamboat Springs have 25 to 35% housing price premiums compared to Pagosa Springs. Pagosa Springs is a year-round destination with hiking, fishing, white-water rafting, and cycling during the summer and 20-inches of monthly snow attracting skiers and snowboarders from hundreds of miles around.
Tower Capital was approached by the sponsor with just a couple of weeks prior to the close of escrow to arrange the acquisition financing and was able to quickly procure a private bridge lender who offered a fixed-rate loan within a very critical timeframe; funding the loan in just three (3) business days from term sheet execution. The 12-month, full-term interest-only, fixed-rate loan allows the sponsor to close on the land as they finalize the construction financing.
