July 26, 2023
“Banks, you know, are loaning less,” said John Hutchinson, Co-CEO and global head of origination for Trez Capital, working in the private debt fund manager’s Dallas offices.
In late 2022, Trez provided a $26 million construction loan to build 115 apartments in a new five-story building with a view of downtown Seattle and Elliot Bay. Construction started before the end of 2022, after a relatively fast underwriting process. Debt funds typically close their construction loans in 45 to 60 days. The developer declined to be named in this story.
The loan from Trez covers 74% of the $35 million total development cost of the planned mid-rise.
That’s much more than a conventional bank loan would provide.