Development
Construction Financing in a Higher-Rate Environment
How sponsors are sizing construction debt, blending equity, and underwriting exit in the current capital markets cycle.
June 15, 2025 · Kismet Kapital
Senior construction LTC has compressed across most asset classes, pushing sponsors to capitalize a larger share through preferred equity, mezzanine, or programmatic JV equity.
Lender focus
Construction lenders are emphasizing GMP contracts, bonded GCs, robust contingencies, and exit underwriting tied to credible permanent debt assumptions.