According to information found on a Securities and Exchange Commission document, Vectra Bank's commitment will permit Across America to fund construction notes for build-to-suit real estate projects for national and regional chain retailers. The financing will be through a series of promissory notes.
Each note will be issued for individual projects under the facility and must be underwritten and approved by Vectra Bank. It will have a term of 12 months with one allowable extension not to exceed six months subject to approval. Interest will be funded from an interest reserve established with each construction loan.
"Each loan shall be for an amount, determined by Vectra Bank, not to exceed the lesser of 75% of the appraised value of the real property under the approved appraisal for the project or 75% of the project costs," according to the SEC documents. Across America must then provide the remaining costs.
Vectra Bank will retain a first deed of trust on each property financed and have personal guarantees, according to the documents. Across America also provides financing for developments where a bank requires developer equity.
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