Innovative program allows FedEx preferred developer to secure 95% LTC
financing and maintain 100% ownership of properties throughout the
The transaction, Envoy’s first in the industrial build-to-suit market, allowed a FedEx preferred developer to achieve 95 percent loan-to-cost construction financing for a pre-leased, single tenant distribution facility located across from
Envoy worked in tandem with its senior bank partner to provide the subordinated financing as a part of a wrap construction loan for this package distribution facility that will serve the communities around the ski resorts of
“Few FedEx distribution facilities have a higher profile to high-net-worth real estate buyers than this facility,” says
Cram continued, “Envoy is pleased to have the opportunity to help FedEx Corp. and its preferred developer finance their ongoing expansion plans to meet their customers’ needs for faster delivery times.”
More control, more profit and less red tape
The package distribution facility transaction was the second to be completed under a new high-leverage construction loan program designed to provide developers with the additional capital they need to increase the size of their pipeline and meet their tenant’s construction schedules.
“Envoy's program helps developers secure up to 95 percent loan-to-cost financing for their pipeline of net lease development properties without the hassles associated with JV agreements or mezzanine loan documentation,” Cram says. “And they no longer have to give up control as is typical with pre-sale contracts. It’s everything the preferred developer has been asking for.”
Unlike many financing programs available to developers, including those offered by REITS, Envoy doesn’t require the developer to sell the property immediately following construction. Instead, the developer retains control of the property simply by paying off the construction loan and paying an exit fee. For many developers, the Envoy program can represent the lowest-cost option for capital when compared to third-party equity and traditional bank construction debt.
For more details on Envoy’s high-leverage construction loan program, including a printable flyer and a loan requirements checklist, visit envoynnn.com/construction-loans.
Based in greater
Envoy is backed by a