Condominium Development Financing for Experienced Developers and Sponsors
CONDO DEVELOPMENT Product Matrix
| LTV | N/A |
| LTARV | 65% |
| TLTC | Up to 85% |
| Construction Coverage | 100% |
| Term | 18-24 Months Non-Dutch / Interest Only |
| Loan Size | $1MM - $10MM |
| Rate Structure | Fixed / SOFR (6/6/6 Adj.) |
| Use Cases | Ground-Up & Mid-Construction, Heavy Rehab & Expansion, Bridge to CO |
| Foreign Nationals | Exception |
*Larger loans subject to individual review
Bayport Funding lends on condominium projects from its own balance sheet. Ground-up construction, conversions, and mid-construction bridge capital for experienced developers and sponsors, with every loan originated and held in-house from closing through payoff.
Bayport is THE SMART MONEY LENDER®. Condominium work sits alongside multi-family as a core vertical within the firm’s development financing platform.
The Smart Money Lender®
What Is Condominium Development Financing?
Condominium development financing supports the construction, conversion, or completion of projects where the primary exit strategy is the sale of individual units. Unlike rental property financing, which is underwritten based on rental income, condominium financing is structured around the projected sale of those units.
The loan structure reflects this distinction. Funds are typically disbursed as construction milestones are completed, and the legal process of establishing each condominium as a separately titled unit must be finalized before individual sales can close. As units are sold, they are released from the lender’s lien, allowing the loan balance to be paid down incrementally. A realistic sell-out schedule based on local market demand is therefore a critical component of the financing strategy.
Why Developers Choose a Direct Balance Sheet Lender for Condo Projects
Bayport originates and asset manages every loan it makes, providing continuity throughout the life of a project. Credit decisions, draw management, and workouts are handled in-house, giving borrowers a single, accountable lending partner from closing through repayment.
Our team is experienced in the complexities of condominium development, including condo declarations, parcel subdivisions, and partial releases. This expertise, combined with efficient execution and streamlined draw management, gives developers the responsiveness and certainty they need to keep projects moving.
Condo Development Financing Structures Bayport Provides
Three structures cover the stages where condominium borrowers most often need capital. Each loan is sized to the borrower’s record, the business plan, and the market.
GROUND-UP CONDO CONSTRUCTION LOANS
Financing for new condominium developments from initial site work through certificate of occupancy, designed for experienced developers with a well-defined construction budget, clear permitting strategy, and realistic sales and absorption plan. View additional financing parameters on the ground-up construction page.
CONDO CONVERSION FINANCING
Financing for two-family conversions, larger residential-to-condominium repositioning projects, and heavy renovations where the primary exit strategy is the sale of individual units. Bayport can finance both acquisition and construction costs within a single loan structure. Additional rehabilitation financing parameters are available on our fix and flip with rehab page.
MID-CONSTRUCTION BRIDGE CAPITAL
Financing for condominium projects already underway that require additional capital to reach completion. Bayport considers lender takeouts, stalled projects, and partially completed developments, with underwriting focused on the remaining scope of work, budget, and path to completion.
Bayport provides financing for mid-rise, mixed-use, and other condominium development projects across the middle market.
Experience Tiers for Condo Development Financing
Bayport evaluates borrower experience based on projects completed within the prior 24 months, with financing parameters aligned to demonstrated track record.
| Experience Level | Completed Projects | Advance Rates | Description |
|---|---|---|---|
High Experience |
5+ completed projects | Up to 65% TLTC and 65% LTARV | Sponsors with a consistent track record of completing comparable projects may qualify for Bayport’s highest advance rates. |
Medium Experience |
3–4 completed projects | Up to 50% of acquisition cost and 50% LTARV | Designed for experienced developers with a solid record of completed projects who are pursuing similar or moderately larger opportunities. |
Lite Experience |
1–2 completed projects | Terms determined case by case | Sponsors with a more limited recent track record may still qualify based on the strength of the project and overall borrower profile. |
Call (800) 609-7707 to discuss your project.
All terms are subject to underwriting approval.How Bayport Manages Condo Construction Draws
Bayport manages every construction draw in-house, providing borrowers with direct access to a team that understands the project and its approved loan structure.
Efficient draw management helps keep construction on schedule and minimizes costly delays. When funding is delayed, work can slow, subcontractor schedules can be disrupted, and project completion dates can be affected.
For each draw, Bayport reviews the completed work against the approved construction budget and project schedule before releasing funds, helping sponsors maintain momentum from construction through completion.
What Bayport Evaluates in a Condominium Project
Bayport evaluates the borrowers, property, and development plan together, with particular emphasis on experience completing comparable projects. A developer pursuing a project similar to those they have successfully completed presents a different risk profile than one moving into a significantly larger or more complex development.
From there, underwriting considers the borrower’s equity investment, the strength of the construction budget and contingency, and market support for projected pricing and absorption. Presales are also considered where applicable.
A clearly defined exit strategy is essential, whether through the sale of individual units or a long-term hold supported by long-term DSCR financing.
Harris Lukashok, Head of Origination, brings a hands-on approach to evaluating projects, including reviewing architectural plans and visiting development sites. His perspective is informed by his graduate studies in real estate development at Columbia University’s Graduate School of Architecture. Learn more about the experience behind Bayport’s lending decisions on our team page.
Institutional Credibility Behind Every Condo Construction Loan
Bayport has originated more than $2.2 billion across 36 states since 2011, providing financing for middle-market real estate projects with loan sizes up to $10 million.
Every loan is funded through Bayport’s balance sheet and retained through payoff, providing sponsors with continuity throughout the life of the project. Credit decisions, draw approvals, and any necessary adjustments are handled by the same internal team, giving borrowers a single, accountable lending partner from term sheet through final unit release.
More than 15 years of continuous lending across varying market conditions has built deep experience in the property types and markets Bayport serves. This combination of committed capital, direct decision-making, and specialized expertise provides condominium sponsors with a consistent financing partner from closing through completion.
Marcia Kaufman, Chief Executive Officer, draws from more than three decades of leadership experience in mortgage banking and real estate. Harris Lukashok holds an MS in Real Estate Development from Columbia GSAPP and spent fifteen years in commercial real estate finance, originating loans from $2 million to $300 million at Bank of America and Ladder Capital.
Learn more about the firm on our About Bayport page or explore a recent transaction featuring Bayport’s $5.5 million loan for a Brooklyn condominium project.
Frequently Asked Questions About Condo Development Financing
Bayport provides financing across 36 states, with broad coverage throughout the Northeast, Southeast, Midwest, and other key U.S. markets. To quickly confirm eligibility for a specific property, submit a loan request with the property address.
Up to $10 million, supported by our own balance sheet. That covers most mid-rise and mixed-use condominium projects.
Bayport evaluates developer experience in relation to the size, scope, and complexity of each project. Sponsors with a limited recent track record are encouraged to call (800) 609-7707 to discuss their project and potential eligibility.
Yes. Mid-construction bridge capital is a defined product, underwritten on the remaining scope and the revised path to sell-out.
Bayport is experienced in the requirements of condominium development, including condo declarations, parcel subdivisions, HOA formation, and individual unit releases as sales close.
Bayport's internal team, following inspection of the work in place before each release.
Submit a Loan Request for Condo Development Financing
Funded development deals across Bayport’s active markets, including the Northeast and South Florida.
Submit a Loan Request for Condo Development Financing
Developers and sponsors with an active condominium project can submit a request for review, or call (800) 609-7707 to talk it through. Bayport reviews project eligibility and answers with a decision made in-house.
Brokers placing condominium deals can do so through Bayport Broker Direct.
General inquiries go to the contact page or info@bayportfunding.com.
