BWE, a national commercial and multifamily mortgage banking company, announced today that it has secured a $20,575,000 participation loan to finance the construction of a 105-unit multifamily community in Medford, Oregon.
Chris Dyson, senior vice president, and Libby Davis, senior production analyst, both of BWE’s Birmingham office, originated the financing with a life insurance company on behalf of a developer and operator of multifamily housing across the Pacific Northwest. The development is being financed through a participation loan program, which allows developers to secure very high loan proceeds (up to 100% of project costs) and a competitive fixed interest rate. Designed for projects that will be constructed and sold within a four-year period, the participation loan allows the lender to share in the profits of the development while giving the sponsor a high-leverage and easy-to-execute financing option that allows construction to begin quickly.
“When our longtime BWE client decided to pursue a new development strategy, rather than their traditional build-and-hold, we knew that a participation loan program with a life insurance company would provide the strongest possible financing for the project. By helping our client overcome potential permitting issues, we were able to secure and close this deal quickly so that construction could begin on Medford’s latest high-quality multifamily community,” said Dyson. “At BWE, we’re committed to finding unique financing solutions that give our partners the resources they need to build quality housing all over the country.”
The client added, “Chris Dyson and his BWE team were, once again, great to work with. They delivered an innovative solution to fit our strategy for this multifamily development.”
Designed to bring a new, high-end development to the Medford community, the property will be composed of 42 one-bedroom units and 63 two-bedroom units. All apartments will feature luxury amenities such as hardwood-style flooring, quartz countertops, spacious bedrooms, large walk-in closets, electric fireplaces, and private patios/balconies. The community amenities will include a pool, health and athletic center, yoga studio, clubhouse, outdoor grilling areas, and electric vehicle charging stations. The property will be developed on Medford’s northeast side and will give residents easy access to a variety of shopping, entertainment, and recreation options. The project has already broken ground and is expected to be completed in 2026.