Mini Perm

Mini Perm

In construction and project finance, an informal term for debt financing that is payable over three to five years. Generally speaking, a developer accesses mini perm financing to complete the project to the point where it can begin to produce revenue. The developer then uses the revenue to pay off the mini perm.
References in periodicals archive ?
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's maturity.
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.
"Mini perm"--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.