West Coast Bank Meets Construction Financing Demands On The East Coast
Construction and housing demand is booming in cities along the East Coast due to a combination of factors, including economic and social growth. An increase in construction requires a similar increase in available financing, and Colorado Federal Savings Bank is sweeping in to help builders in these cities keep up with housing demand.
A joint report by PricewaterhouseCoopers and Urban Land Institute named Charlotte’s real estate market the third most appealing urban market in the United States. A fast-increasing population, large-scale construction and a rapidly expanding job sector are paving the way for larger projects, such as a $350M film studio and a $600M Hard Rock Casino. With job growth comes demand for housing, and Colorado Federal recently introduced speculative construction financing in Charlotte.
Most recently, the bank closed on the acquisition of a lot in 28 days and as part of its role as “the builder’s lender” — building and maintaining close relationships with each client — Colorado Federal closed on a construction loan for the same builder.
Colorado Federal also is working with builders looking to increase density in booming markets. The bank is about to close on a loan for 10 townhomes near the NoDa area of Charlotte, known for its diverse art and entertainment. All 10 units are expected to sell prior to completion.
The Hamptons, N.Y.
According to the New York Building Congress, the value of New York City housing starts hit $32.2B in 2016. The Corcoran Group found consumer confidence has shot up since the election in the Hamptons, reports the New York Post. The Hamptons remains popular for upper-middle-class and wealthier clients working in Manhattan seeking to escape the city. Colorado Federal has already closed one loan in the district this month for Modern Net Zero, a builder focused on designing and constructing self-sustaining turnkey homes, complete with home automation and net zero technology. The bank is funding another single-family residence in West Hampton by the end of the month.
Just 100 miles away, the bank is making headway in the popular historic Prospect Lefferts gardens of Brooklyn — adjacent to the Prospect Park zoo — with a condominium development project valued at $2.5M.
There has been consistent demand for construction financing in Brooklyn, according to Colorado Federal, with several deals coming in every month.
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