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Articles tagged with #development-finance
A development exit loan is not sized on your build cost. It is sized on three numbers that most developers meet only at term sheet stage. Here is the sizing walk, with an illustrative worked example inside the 2026 published bands.
Follow the money up a real development stack in 2026: senior debt at 60 to 65 percent of cost, mezzanine to around 90 percent, stretch senior at 85 to 90 percent in one facility, then JV equity with an 8 to 12 percent priority return and a profit split. Who holds what security, and who gets paid first.
Loan to cost, loan to GDV, and why the facility is always the lower of the two, plus what each rung of the leverage ladder costs.
