One important benefit of working with Tributary Capital is our agility and ability to quickly problem-solve, even when presented with unique challenges, of which there were many in 2020. We have the ability to comprehensively tackle the entire capital stack, with a holistic approach to benefit our clients and partners.
We recently had with the opportunity to work with Highland Development Co. on Signalmen Apartments, a 52-unit multifamily development located in Denver’s West Colfax neighborhood, closing a financing deal that facilitated the project’s construction in this in-demand area.
Highland had previously secured financing for the project, consisting of a construction loan and private equity, but when COVID-19 drove up construction costs and slowed down timelines, the company found itself in need of an additional $2.4 million to bridge the gap between their existing financing and the new cost of the project.
Serving as both debt advisory and as a preferred equity partner, Tributary was able to secure a new $8 million construction loan through First Western Trust with a more favorable loan-to-cost ratio of 75%, compared to the original loan’s 65%.
This reduced the need for additional equity to $1.3 million, which Tributary was able to provide directly as a preferred equity partner. This opportunity increased returns for the sponsors and for their common equity partners.
This project broke ground in March 2021. Additional project partners include local architect Studio 646 Architecture and local general contractor DIRC Homes.