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LAS VEGAS-Corus Bank this week funded a $123-million construction loan for an affiliate of Barclay's North of Everett, WA, which is developing the 21-story Streamline Tower condominium project Downtown. The total project cost is estimated at $150 million, with construction making up about $107 million of the total.
Streamline, now built up to its second level, will consist of 275 residential units (355,000 sf), about 12,000 sf of street-level retail space and 428 garage parking spaces. The tower is rising one block from Downtown's Fremont Street Experience, a seven-block open-air pedestrian mall featuring several casinos, nightly light and sound shows, dining, shopping and other entertainment options. Project completion is scheduled for late 2007.
The units will be a mix of one-, two- and three-bedroom units with granite countertops, high-end appliances, plentiful windows and private balconies providing views of the Strip or the Valley. Other amenities will include a rooftop terrace and recreation deck with a swimming pool and spa, a fitness center, valet parking and a private clubhouse. Sales prices early on ranged from $356,000 for the smallest units, about 850 sf, to $1.3 million for the 2,000-sf units, but the low-end has since risen to about $420,000, Allen told GlobeSt.com in May.
Barclay's North principal Patrick McCourt is developing the property with local partner Dusty Allen. In addition to Corus Bank's senior loan, mezzanine financing is being provided by MMA/Transwestern Mezzanine Realty Partners. Martin-Harris Construction, a veteran of the Southern Nevada construction industry, is the general contractor. Prudential Americana has the exclusive sales assignment.
In May, Allen told GlobeSt.com that the project had cleared its construction hurdle and was in final negotiation with Corus regarding the construction loan. "Every deal we are doing now is taking longer than hoped," Corus Bank VP Seth Hewitt tells GlobeSt.com.
Corus did not go into detail on the construction loan, such as the term, interest rate and the pre-sale hurdle that needed to be met prior to funding. Allen tells GlobeSt.com that the project is "more than 50% leased," though other sources say the project is over 60% sold. Allen says he expects to begin closing the sales in January 2008, shortly after the completion of construction.
In June, Corus funded a construction loan for the Juhl, a $105-million, 347-unit condo project also Downtown. Slated for a 2008 completion, that project was 60% pre-sold.
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