Builders Capital Lends $50M on Utah Resort Project
Invent Development Partners has sealed $50 million of construction financing to develop a 175-acre resort in Utah, Commercial Observer can first report.
Builders Capital supplied the fixed-rate, nonrecourse loan on the Denver-based developer’s planned five-phase $350 million Lionsback Resort project in Moab, Utah, that will feature 188 single-family residences. Proceeds from the debt package will be used to fund phase one’s on-site infrastructure improvements and vertical construction of the development’s initial 34 single-family homes, along with horizontal infrastructure of the second phase.
Sonnenblick-Eichner Company’s David Sonnenblick and Elliot Eichner arranged the transaction.
“Our client spent 16 years to obtain the entitlements to build this project in one of our country’s most beautiful natural environments,” Sonnenblick, a principal of Sonnenblick-Eichner Company, said in a statement. “We were fortunate, given the uncertainty in the market, to be able to identify a lender who understood the viability of this special development.”
Located on Sand Flats Road near the entrance to the Sand Flats Recreation Area, the resort will be adjacent to Arches National Park and Canyonlands National Park in eastern Utah. The project will include 145 for-sale residential casitas to be managed and rented by the hotel operator and 43 single-family lots for custom homes.
“Given the unique location of the site and the strict barriers to entry, we were successful in procuring a lender that provided a nonrecourse loan at 85 percent of cost,” Eichner, a principal of Sonnenblick-Eichner, said in a statement.
Officials at Builders Capital and Invent Development Partners did not immediately return requests for comment.
Andrew Coen can be reached at email@example.com