PHOENIX – Structured Finance Firm, Tower Capital, recently arranged a $56,000,000 development loan for the completion of a new 3,900 home (estimated) master-planned community located in Aurora, Colorado. The future development sits on a 1,374-acre site owned by Melcor/TC Aurora, LLC.
The future community, named Harmony, rests 8 miles south of the Denver International Airport and is expected to be the next big growth area for the Denver MSA. The master-planned community will consist of six unique neighborhoods with various home products and will include amenities such as an 8,500-square foot community center, a swimming pool and fitness facility, sports courts, connected trail systems, as well as open space for events. The multi-year phased project is anticipated to cost over $200 million when full build-out is completed. Initial lot deliveries will occur in 3Q18 with models expected to open in early 2019.
The total financing secured by Tower Capital, structured as a revolving line of credit, is comprised of a senior loan plus a mezzanine loan, between two participating lenders. The floating rate, interest only loan represents approximately 60% loan to cost for phases 1 & 2 of the project. Commenting on the transaction, Kyle McDonough, principal of Tower Capital said, “This was a very complex transaction involving a large institutional lender, pension fund, metro-districts, home builders, and other groups helping to bring this project to fruition.”