At a glance
- The project is budgeted at $139 million, putting the Santander loan at about 65% of cost and leaving about $49 million to be funded by sponsor equity or junior capital.
- For allocators, the 65% loan-to-cost ratio means sponsors' equity absorbs cost overruns and slow lease-up before Santander's principal is exposed.
- Caldwell is going up on 6.9 acres at 35 Glenlake Parkway NE, near GA-400 and I-285, with units averaging 937 square feet and first apartments expected in mid-2028.
Kennedy Wilson and Shimizu Corporation have broken ground on Caldwell, a 382-unit apartment community in Sandy Springs, Ga., financed with a $90 million construction loan from Santander, Connect CRE reported Nov. 11.
The project is budgeted at $139 million, putting the Santander loan at about 65% of cost and leaving about $49 million to be funded by sponsor equity or junior capital.
For allocators, the 65% loan-to-cost ratio means sponsors' equity absorbs cost overruns and slow lease-up before Santander's principal is exposed. Any mezzanine or preferred equity in the remaining $49 million would sit behind the bank and ahead of common equity.
Caldwell is going up on 6.9 acres at 35 Glenlake Parkway NE, near GA-400 and I-285, with units averaging 937 square feet and first apartments expected in mid-2028. The financing follows another Kennedy Wilson ground-up start that Private Wealth Daily previously reported, a $175 million Kennedy Wilson project in Washington, D.C.
Reported by the Real estate debt desk from Connect CRE. Published . Corrections