Mag Mile Capital (MMCP) Secures $24M Construction Financing for 87-Unit Cleveland Multifamily Project

Core Insights - Mag Mile Capital, Inc. has arranged $24 million in construction financing for an 87-unit multifamily development in Richmond Heights, Ohio, as part of the Belle Oaks Marketplace project [1][4][8] Financing Details - The construction loan is structured at 80% loan-to-cost leverage and priced at a floating rate of 600 basis points over the 1-month SOFR benchmark [4][13] - The financing was provided by a private credit debt fund, indicating a shift towards alternative lenders in commercial real estate financing as traditional banks become more selective [4][5] Market Trends - Private credit and debt funds are increasingly important in commercial real estate financing, particularly in multifamily housing development, driven by long-term housing supply shortages and sustained rental demand [5][9] - Multifamily housing development remains one of the most actively financed sectors in commercial real estate, supported by demographic trends and housing supply constraints [9][10] Company Strategy - Mag Mile Capital aims to match development projects with suitable capital partners, demonstrating its ability to navigate the evolving lending environment [6][10] - The company is expanding its role in multifamily construction financing and commercial real estate capital markets advisory, leveraging relationships with various capital providers [12]