When Lender Problems Threaten Developer Progress

An experienced real estate developer had successfully navigated the complex entitlement process for a 242-unit multifamily development with ground-floor retail in Denver's thriving Downtown submarket. The 1.45-acre site had achieved full Site Development Plan approval—a significant milestone representing years of work and substantial investment.

However, external complications created unexpected financing challenges that threatened to delay the project's momentum. With construction lenders requiring clear title and certainty of execution, the developer needed a bridge solution that could quickly refinance the entitled land and position the project for construction financing.

Traditional lenders struggled with several aspects of this opportunity:

• Complex asset class: Banks couldn't efficiently underwrite entitled land despite significant value creation through the entitlement process
• Time pressure: The developer needed immediate relief to maintain project momentum and secure construction financing
• External complications: Recent foreclosure proceedings from a previous lender created noise that distracted from the deal's fundamentals
• Construction timing: Traditional lenders wanted construction financing in place before providing bridge capital

While banks saw complications in the entitled land and previous lender issues, we saw an experienced developer with a construction-ready asset and a clear path forward.

• Speed When Timing Matters: We cleared financing obstacles in days to maintain project momentum and secure construction financing.
• Understanding Development Value: While most lenders struggle with entitled land, we recognized the substantial value created through the entitlement process.
• Creative Structuring for Takeout: The four-month term provided sufficient runway for construction financing while we collaborated with the takeout lender for a smooth transition.
• Partnership Approach: This developer's multi-project portfolio demonstrated the execution capability we value. Our bridge capital reflected confidence in their track record.

The property sits half a mile from Burnham Yards, the Denver Broncos' preferred stadium site. With $150M in Broncos property acquisitions in the submarket, significant development and appreciation are coming. Denver's $105,735 median household income and diversified economy—aerospace, bioscience, healthcare, technology—drive strong multifamily fundamentals.

Whether you're facing timing constraints on entitled land, need to clear title issues before construction financing, or have other complex development scenarios, Spectra Lending brings the expertise and capital to deliver.