Illustrative structure · Bank construction loan + C-PACE
$24M 120-unit ground-up apartments
A developer with land and entitlements for a 120-unit apartment project needs construction financing with a clear permanent exit.
Illustrative example. Structures shown are illustrative examples of how these programs are typically arranged. They are not client testimonials or guarantees of results; actual terms vary by borrower, asset, and market. This is not a closed transaction and not an offer or commitment to lend.
Why this structure
- A bank construction loan is usually the lowest-cost senior debt for an experienced developer. It is modeled at up to 65% of total cost and no more than 65% of the as-completed value.
- California C-PACE can pay for qualifying energy, water and seismic improvements, modeled at up to 25% of project cost at a fixed rate over about 25 years. That reduces the equity the developer has to bring, if the bank consents.
- The bank sizes the loan against the permanent exit: stabilized income has to support a 9% debt yield and 1.25x DSCR, so the takeout is tested before the construction loan closes.
Program parameters used
- Bank max loan-to-cost
- 65%Modeled assumption, reviewed 2026-10-31; confirm with the lender.
- Bank max loan-to-value, as completed
- 65%Modeled assumption, reviewed 2026-10-31; confirm with the lender.
- Bank spread
- SOFR + 3.125%Indicative; set by the lender.
- Min debt yield at stabilization
- 9%Modeled assumption, reviewed 2026-10-31; confirm with the lender.
- Min DSCR at stabilization
- 1.25xModeled assumption, reviewed 2026-10-31; confirm with the lender.
- C-PACE share of project cost
- Up to 25%Senior lender consent required. Modeled assumption, reviewed 2026-10-31; confirm with the lender.
- C-PACE term
- 25 years, fixedModeled assumption, reviewed 2026-10-31; confirm with the lender.
Timelines are typical ranges after a complete file and are subject to lender approval, appraisal, title, and diligence. They are not guaranteed.
How it typically unfolds
Step 1
Test the exit first
The advisor sizes the permanent loan on projected stabilized rents and expenses, then works backward to a construction loan the takeout can repay.
Step 2
Size the budget and reserve
Hard and soft costs, contingency, the developer fee and the interest reserve are budgeted together so the loan, C-PACE and equity cover the whole plan.
Step 3
Place the construction loan and C-PACE
The bank funds the loan as lender of record and controls every funding during construction. Corin never holds or moves loan funds.
Step 4
Lease up and refinance
After completion and lease-up, the property is underwritten for a permanent loan, such as an agency, HUD or bank loan, that repays the construction loan.
What a lender will look at closely
- Senior-lender consent to C-PACE, because the assessment is collected with property taxes and ranks ahead of the mortgage.
- Cost overruns against the contingency, and who covers them if the contingency runs out.
- Floating-rate exposure during construction and the rate cap the bank requires.
- Whether lease-up reaches the rents and occupancy the takeout lender needs to pass its DSCR and debt-yield tests.
Have a similar property?
Other representative structures
- $2.5M 58-bed assisted livingSBA 504 refinance
- $14.5M 110-key flagged hotel + PIPSBA 504 Green $5.5M + Bank 1st
- $16.8M 96-bed memory careBridge-to-HUD 232/223(f)
- $9.2M Boutique hotel → assisted livingConversion bridge · California
- $2.1M 8-unit apartment purchase and rehabPrivate lender · purchase + rehab
All rates, terms, and sizing are indicative estimates for discussion only, are not a commitment to lend, and are subject to lender underwriting, appraisal, credit approval, and program guidelines in effect at application. Corin Commercial arranges loans as a licensed California real estate broker and is not the lender. Corin Commercial, Inc. · Real estate broker, California Department of Real Estate · CA DRE Corp. License #01522444 · Designated Officer: Neeli Khanna