Prior to the financial crisis of 2008, financing a condominium building was relatively simple. Since then, however, U.S. banks are less willing to lend the large sums required and, as such, the tiers of equity and debt needed to get the job done have become far more intricate. Developers who want to build a luxury condo tower need to pull together a complex array of equity partners and lenders.
The Real Deal put together a video that breaks down the process, looking at what strings are attached to the different types of capital and how they come together to form a functioning capital stack.
Watch the video above for a full rundown of how condo financing works in a world of wary banks and non-traditional lenders.