Specialty Finance Group, a subsidiary of The Bankers Bank, announced that they closed a $51 million construction/ mini perm
loan with Impact Properties for Impact's Westin Tampa Bay resort project.
They have historically been unpopular as they expose the project company to the risk of default if the financial markets are not able to accommodate a refinancing before the hard mini perm
Nationally, BlueStone secured over $206 million dollars worth of financing for projects including Magdalina Estates, a 12 unit luxury townhouse development in Punta Gorda, FL, a refinancing loan for the Holiday Inn Apex in Vail, CO, and a debt/ mezzanine construction loan and five year mini perm
for the ground up development of a four star Intercontinental Hotel in Rosemont, IL.
"--miniature permanent--is a short-term financing option used to pay off construction costs on commercial developments, usually three to five years, with a balloon payment at the end of the term.
The interest rate during renovation is at 30 day libor + 2.8 float, three percent min, and the roll into the mini perm
is the same.