Development & Construction
When there is no property that fits what you need, build it — at up to 90% of cost.
Why settle for a property that is under par when you could put together a development plan and generate a considerably better return in the process? The same logic applies wherever there is excess demand for an undersupplied commodity — and with a growing population and a shifting corporate landscape, there is almost always somewhere that describes.
The condition is that the groundwork and planning stages are done with real professionalism. Construction lending is unforgiving of optimistic budgets.
What our construction products include
- One-time underwriting for the ADC, mini-perm and permanent loan — and one fee. Underwriting once rather than three times removes both cost and the risk that the take-out changes its mind mid-project.
- Aggressive loan-to-cost, up to 90%. Considerably more than a bank will typically advance on ground-up work.
- A wide range of acceptable property types, including build-to-suit for franchises and flagged hospitality.
- Expert advice from a Guardian consultant throughout.
- Frequent communication, so the flow of your project is not interrupted by silence from the lender.
- Advanced solutions for complex projects and unusual scenarios.
- Last-minute financing and refinancing where you need it.
Why one-time underwriting matters
The traditional route is a construction loan from one lender and a permanent loan from another, arranged separately. That leaves a gap: if the take-out lender's appetite changes while you are building — because rates moved, or because their exposure to your asset class filled up — you finish the project holding expensive short-term debt and no way out of it.
Underwriting the construction, mini-perm and permanent loan together at the outset closes that gap. You know at groundbreaking what the property will be financed with when it opens.
What construction lenders scrutinise
Three things, in roughly this order: the contractor and their track record on comparable projects; the budget, including a contingency that reflects real conditions rather than an optimistic one; and your experience with projects of this type and scale. A first-time developer with a strong general contractor is a considerably better file than the reverse.
Costs and schedules move. Lenders know this. What they are assessing is whether you have planned for it.
Have plans and a budget?
Send what you have. Even a preliminary budget is enough for us to tell you if the capital stack works.