Construction Loan Monitoring for New Apartment Complex in South Carolina
The project included the construction of a new thirteen-building apartment complex, known as Springs at Greenville. The apartment complex included thirteen, two-story multifamily structures comprised of residential apartments of various sizes and floor plans. The first floor in ten of the apartment buildings contained internal garages. The apartment buildings feature a combination of one, two and three bedroom configurations, with handicap-accessible units provided on the first floor. The clubhouse consisted of two offices, a fitness center, conference room, file storage room, a reception area, men’s and women’s restrooms, a lounge and café, and a pool equipment room. The maintenance garage consists of the maintenance area, single restroom, and garage area.
As the primary lender on the construction loan for the hotel development, CIBC relied heavily on the project’s scheduling commitments. Monthly disbursements of the construction loan necessitated detailed inspections confirming the completion of specific trades and project milestones.
AKT Peerless utilized our extensive background in construction and cumulative cost data to perform a preliminary review of the project prior to loan closing. The initial review helped pinpoint any major factors that could potentially impact the original proposed budget or schedule throughout the duration of the project.
AKT Peerless’ presence at monthly pay application review meetings provided regular insight into any design or scheduling changes to the project. The information at the meetings was regularly communicated to CIBC so they could carefully manage any financial risks throughout the various stages of construction.
AKT Peerless’ comprehensive monitoring services provides CIBC Bank: Protection from liability exposure during the initial review of the construction documents. Recommendations for budgetary contingencies to account for unforeseen conditions. Recurring updates on any potential risks or modifications to the construction design throughout the construction. Assurance that the monthly disbursements of loan funds were not premature but were consistent with the appropriate project milestones.
