The credit is built to be repaid. Against a total project cost of $16,552,172, roughly $306,500 per unit, a basis that sits comfortably below the prevailing Phoenix Class A trade, the request is right-sized to approximately $14.0 million, near eighty-five percent of cost, and structured as a bridge-to-HUD facility. Meaningful sponsor equity and deferred fee stand subordinate to the debt. Completion and carry guaranties, backstopped by a contractor guaranteed maximum price, transfer construction and shortfall risk away from the loan; a funded interest reserve carries the asset across the lease-up window where the risk truly lives; and a documented HUD 221(d)(4) or agency permanent takeout provides a defined exit off the construction facility.

​

Most tellingly, the opportunity has been underwritten to its downside rather than its dream. Income has been stress-tested against current submarket rents and normalized operating costs, leverage has been sized to a conservative debt yield, and the exit capitalization rate has been widened beyond the base case. The conclusion holds through the stress: with a disciplined basis, real subordinate equity, full guaranties, and a funded reserve, the loan remains money-good even if the lease-up disappoints. This is not an invitation to underwrite the upside; it is an opportunity engineered to protect the lender in the downside.

​

​Indicative terms: senior construction loan of approximately $14 million; approximately eighty-five percent loan-to-cost; total project cost of $16.55 million; bridge-to-HUD structure with recourse burn-off, completion and carry guaranties, and a funded interest reserve; HUD or agency permanent takeout.