Construction loans are underwritten on sponsor track record, budget, and the value created at completion, not in-place cash flow.
What We Do
Construction loans are underwritten on sponsor track record, budget, and the value created at completion, not in-place cash flow.
When It’s the Right Tool
Ground-Up Development: New construction across multifamily, industrial, retail, hospitality, and specialty asset classes.
Major Renovation & Adaptive Reuse: Substantial repositioning and conversions that require construction-level financing and oversight.
Mixed-Use & Complex Projects: Multi-component projects where leverage, timing, and draw structure must be coordinated.
Land & Horizontal Development: Entitled land acquisition, infrastructure, and pre-development capital ahead of vertical construction.
Representative Market Terms
Parameter | Guideline |
|---|---|
Loan Amount | $5M to $500M+ |
Loan-to-Cost | 55–75% senior; to 85%+ with mezz |
Loan-to-Value | Up to 70–75% of stabilized |
Term | 24–36 months + extensions |
Pricing | SOFR + 250–450 bps |
Recourse | Completion standard; non-recourse available |
Interest Reserve | Funded at closing |
Geography | Nationwide |
The Johnson Capital Edge
Right Lender, First Pass: We target construction lenders active for the project’s product type, market, and size.
Underwriting Before Marketing: Budget and timeline are pressure-tested before lenders see the deal.
Full-Stack Structuring: Senior debt, mezzanine, preferred equity, and JV equity arranged by one coordinated team.
