$8.8M Refinance for 24 Non-Warrantable Condos

24 newly constructed condo units in Dallas, TX

THE SCENARIO

Balloon Maturity on 24 Newly Built Dallas Condos

A developer owned 24 newly constructed nonwarrantable condo units within a single complex in Dallas, TX. Every unit was controlled by the same sponsor group, creating 100% investor concentration across the project.

The existing loan was approaching its balloon maturity. If the refinance didn't close in time, the borrower would face:

Deal Declined

Default interest as high as 24%

Additional penalty points

The timeline wasn't flexible. The maturity date was fixed, and the financial consequences were immediate.

This wasn't about improving pricing. It was about preventing a maturity default on an $8.8M position.

THE CHALLENGE

When Traditional Guidelines Eliminate the Deal

Most lenders cap investor concentration at roughly 40%. This project had one owner controlling the entire complex. That alone narrows the field significantly.

Add in the fact that the condos were nonwarrantable, newly constructed, and without lease history, and the deal moved even further outside conventional lending parameters. The prepayment structure (3-2-1) added another layer of complexity.

Other Lenders

Investor Concentration

Capped at 40%

Condo Status

Warrantable Only

Resulting Outcome

Declined by 12+ lenders

Brick City Capital

Investor Concentration

100% Allowed

Condo Status

Nonwarrantable OK

Resulting Outcome

Engineered & Executed

THE STRATEGY

Structuring Control at the Unit Level

Instead of placing the entire project into one blanket portfolio loan with restrictive release provisions, Brick City Capital structured the transaction as 24 individual loans, one per unit.

That decision preserved flexibility at the asset level. Rather than being locked into a single master note, the borrower now has the ability to:

Sell units without portfolio approvals

Refinance selectively if rates shift

Raise capital unit by unit

Before moving forward, the file was pre-flighted internally to confirm execution outlets given the unique overlays. On complex transactions, validating the exit path upfront is critical.

This wasn't a file you "hope" clears. It had to be engineered correctly from the start.

Working on a Condo Deal That's Hitting Lender Walls?

If investor concentration, nonwarrantable status, or maturity pressure is limiting your options, bring us in before the timeline tightens further.

Pre-Flight Your Deal Scenario

FINAL EXECUTION

Capturing Missed Value Before Closing

During appraisal review, the team identified a material oversight. The completed rooftop patios, a meaningful value-add feature in the Dallas market, had not been properly accounted for in the valuation.

REVIEW

The Oversight

Rather than accept the report at face value, the team challenged the initial appraisal that missed the rooftop patio values.

ACTION

Value Recaptured

The result was an additional $5,000–$10,000 in recognized value per unit across all 24 loans. On a portfolio of this size, that adjustment materially strengthened the overall structure and leverage profile.

CLOSED

The Final Terms

Borrower exited the balloon penalty-free, regained control, and can now refinance or sell units strategically, restoring optionality to their portfolio.

To date, it stands as the largest and most complex deal Brick City Capital has executed.

TRANSACTION SUMMARY

Loan Amount $8,879,000

Asset Type 24 Condos

Leverage 76.9% LTV

Time to Close 35 Days

Meet the Loan Officer

"This deal was complex because it involved a unique asset class and a single investor owning the entire condo complex. We structured 24 loans so the borrower could sell or refinance units individually, giving them full control over each property."

Matt Neptun

Work with Matt

VP of Sales