Detroit.
A Connecticut-based national real estate finance company has announced it plans to loan $37.3 million for developing three multifamily projects in Michigan,
Jonathan Daniel, principal of Greenwich-based Knighthead Funding LLC, told GlobeSt.com Tuesday that the projects range from 18 months for one in Traverse City to a three-year project in Detroit.
"Knighthead has expanded its national bridge lending platform to Michigan as the state has shown sold growth over the past decade," Daniel said. "Knighthead has targeted specific submarkets with superior economic and growth fundamentals."
Knighthead, which was formed in 2013, specializes in loaning capital for the acquisition, renovation, construction and refinancing of commercial real estate across the United States.
The Michigan projects include the following:
- Traverse City: A $17,7 million loan to finance the completion of a 78-unit building with more than 160 parking spaces and nearly 10,000-square-feet of ground-level retail.
- Midtown Detroit: A $10.8 million loan for the renovation of two multi-family buildings. Those buildings have 118-units and nearly 5,000-square-feet of retail space.
- Downtown Ann Arbor: A $8.8 million loan for building a 19-unit condominium structure.
Daniel said the company worked with those on the ground in Michigan to ensure the projects are successful.
Daniel said the Traverse City and Detroit loans should have conventional refinancing options available, while the Ann Arbor loan will have repayment through unit sales.
Daniel said the COVID-19 pandemic has created many lending opportunities for his business.
"Knighthead is focused on continuing to grow its national commercial real estate lending platform and anticipates ample lending opportunities in the near-term, specifically due to COVID-19-related dislocations in the real estate markets," Daniel said. "Many conventional lenders are currently sidelined because of COVID-19."
Daniel continued: "Knighthead will continue to focus on acquisitions, renovations, construction, refinancings and situational opportunities stemming from the current economic environment."
Knighthead, Daniel said, has closed more than $13. billion in loans to date.
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Robert Storace
Robert Storace covers legal trends, lawsuits and analysis for the Connecticut Law Tribune. Follow him on Twitter @RobertSCTLaw or reach him at 203-437-5950.
