Construction Loans

MFC has completed numerous transactions by funding the construction loan and permanent loan with a single, up-front funding. This unique form of funding has eliminated the need to utilize two loans, thereby reducing documentation costs, locking in a pre-determined fixed interest rate and debt service payment up front, eliminating interest rate risk and lowering financing costs by eliminating the higher cost construction loan. On several occasions, MFC has further simplified the transaction by including FF&E in the funding, thereby providing a complete turn-key funding of the entire project.

MFC has funded construction loans backed by off balance sheet leases that contained lease rentals beginning at a future date which were wrapped by insurance to mitigate the lease obligations that the lessee could not assume during the construction period as required by FASB operating lease guidelines.

MFC has funded construction loans backed by non-investment-grade lessees by: adhering to property specific loan-to-value ratios, establishing reserves and obtaining construction performance bonds. In these instances, the property underwriting is more important because the transaction is more of a collateral-based transaction than a credit-based funding.

In all instances, MFC seeks to fund the project utilizing structures designed to meet the client's specific financial, accounting and tax objectives.