WCI Communities has closed on a secured $187 million construction term loan with Wachovia Bank, giving the home and residence building company enough cash to complete the building of two high-rise luxury residential towers, stated Steven Adelman, senior v.p. and treasurer. "This is the largest construction loan we've ever done," he said. "We had a very good reception," he added, commenting on the reaction from the syndicated loan market. He said that the line launched and closed in under three months.
Adelman commented that the real estate sector is not necessarily immune to the present obstacles endured by other sectors in the syndicated loan market, but he admitted that the money is available. "Some banks have been drawing back," he said, adding that it's tougher to get deals through the market. Adelman also pointed out that there are simply fewer banks out there, further tightening the lending market. In general, however, the real estate market has sufficient access to credit, he noted. He indicated that pricing onWCI's existing revolver, refinanced last June, had been lowered 90 basis points from the previous line.
WCI had a previous relationship with Wachovia through a senior unsecured, $350 million revolving line led by Fleet National Bank, Adelman noted. The new three-year loan, priced at LIBOR plus 2%, includes 11 lending institutions, with four newly participating banks. Adelman did not disclose which banks were new lenders. Wachovia took a $27 million hold in the credit.
The line will fund the construction of Belize, a 24-story building located in Florida's Cape Marco slated for completion in June 2004, as well as BellaMare, a 30-story tower in Williams Island scheduled for completion in first quarter, 2005. The line is secured by the two properties. Bonita Springs, Fla.-based WCI develops luxury leisure and retirement communities on both Florida coasts.