BALTIMORE, MD—Citizens Bank is providing a surprisingly large (for the current market) construction finance loan of $107.28 million to Questar Properties for the new 44-story, 394-unit luxury apartment tower it has been working towards developing for years.

The tower will be located at 414 Light St., the former site of the McCormick Spice warehouse.

Citizens was the lead arranger on the loan to longtime client Questar Properties.

The loan is a sizeable one especially considering the Basel III requirements that went into effect in 2015 creating a new category of acquisition, development and construction loans called High Volatility Commercial Real Estate. These come with a 150% capital requirement and while the new rule didn't have much of an affect on construction finance last year, that is beginning to change both borrowers and lenders have said recently.

Increasingly, one might expect the future of construction finance to look somewhat the Citizens Bank transaction: that is, one bank taking the lead with other banks participating in the deal possibly as syndicators or as partners.

The tower will be located at 414 Light St., the former site of the McCormick Spice warehouse.

Citizens was the lead arranger on the loan to longtime client Questar Properties.

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Citizens Bank Lead Arranger for Baltimore Tower's $107M Construction Loan

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