Condominium Conversion

Newport, RI

The Lenthal Condominium was a 13-unit project converted from an historic school on Spring Street in Newport, a block from the lower Thames Street waterfront. An impressive “green” conversion from top to bottom, the project offered spacious, luxury units ranging from $320,000 to $750,000. The first six units sold in the Spring of 2010 at the asking prices, despite the poor real estate market. Delays in permitting caused the project to fall behind schedule. By the time the Developer’s construction loan matured, the bank had ceased making development loans and would not consider a loan renewal. As the first units were being completed and critical Spring marketing had commenced, the bank called the loan. The Developer retained Clubhouse Capital to refinance his debt and secure additional funds to complete work on the remaining units. Clubhouse Capital immediately negotiated a forbearance arrangement with the bank that allowed construction to continue using proceeds from two unit sales. As a result, the Developer was able to finish and sell an additional two units. Clubhouse Capital then secured $2.1 million in new debt to fund completion of the balance of the project. (Fall 2010)