NEBF’s investment in St. Paul Crossing met the
developer’s capital needs with both first mortgage
construction debt and additional leverage via a mezzanine
loan. Total leverage exceeded 90% of the project’s
$21 million development budget. It is not unusual for
NEBF to provide both construction and mezzanine debt
on the same development, and we did so here because
our staff had intimate knowledge of the local condo
market and confidence in the strength and ability of
the developer. The St. Paul project was conservatively
underwritten by the developer below price levels of
comparable properties, further demonstrating the project’s
ability to readily support the NEBF debt. St. Paul Crossing
is an excellent example of NEBF’s ability to structure
mortgage investments which are supported by sound real
estate fundamentals and meet our developer’s capital
requirements.
