Fifty Stones Capital Group Navigates Complexities to Close $84M Construction Loan in Fort Myers, Florida

November 14, 2023 - Fifty Stones Capital Group successfully closed a complex and highly structured $84 million construction loan to finance the vertical development of a 220-unit residential project in Fort Myers, Florida, a milestone that came with no shortage of challenges.

The project, already fully entitled, approved, and permitted, was ready to move into vertical construction but lacked the final piece of the puzzle: a committed capital partner with the flexibility and experience to bring it across the line. With an existing $31 million bridge loan secured against a site valued at over $60 million, the borrower needed a lender capable of stepping into a layered capital stack and making sense of a moving target.

The request, a 24-month, interest-only construction loan, at a time when capital markets were tight, underwriting standards were tightening further, and risk appetite for large-scale ground-up development had cooled considerably.

“This wasn’t a plug-and-play transaction,” said a source close to the deal. “It had complexity at every level, collateral, timing, capital structure, even communication. But the project was real, the borrower was responsive, and the fundamentals were sound.”

Despite the obstacles, including shifting cost assumptions, lender hesitations due to the broader macroeconomic climate, and structuring around the existing bridge loan, Fifty Stones Capital Group was able to tailor a solution that brought the project to life.

Deal Structure & Terms

• Loan Amount: $84,000,000

• Term: 24 months, interest-only

• Interest Rate: SOFR + 675 bps (floor at 9.50%)

• Interest Reserve: Approximately 15 months funded at closing

• Lien Position: First position behind payoff of existing bridge

• Use of Proceeds: Ground-up construction of 220 residential units
  

What made the difference was not just deal structure, but persistence. The borrower remained engaged and forthcoming throughout underwriting, responding quickly with detailed construction budgets, market data, and documentation needed to satisfy third-party reviews.

While many lenders would have declined or delayed due to the size and complexity of the transaction, Fifty Stones Capital Group continued forward, working through shifting numbers, coordinating with stakeholders, and ultimately designing a capital structure that protected all parties while keeping the project timeline intact.

“There were moments where it looked unlikely,” noted another party involved. “But communication stayed open, and everyone on the borrower’s side was ready to collaborate. That kept momentum alive.”

The project’s estimated resale value of $168 million, combined with a strong market outlook for multifamily in Fort Myers, made a compelling case for long-term value. Still, in an environment where few are willing to take calculated risks, closing the deal took more than numbers, it took alignment.

This deal stands as a reminder that even in a tough capital environment, with patience, transparency, and the right team, complex real estate projects can still get the green light.

About Fifty Stones Capital Group Fifty Stones Capital Group is a U.S.-based private lending firm focused on real estate financing across North America. Known for its ability to navigate challenging capital structures and fund nuanced transactions, the firm takes pride in solving problems where others stall.