$33,553,545 senior construction loan for the ground-up development of a 150-unit garden-style multifamily community in Rio Rancho, New Mexico — a single senior facility to 85% LTC.
goKaizen Capital is pleased to present a senior construction financing opportunity for the ground-up development of a 150-unit, garden-style multifamily community — Inca Peak Apartments — in Rio Rancho, New Mexico (metro Albuquerque). The Sponsor is seeking a $33,553,545 senior construction loan (85% LTC), with sponsor common equity funding the balance of cost.
The site sits in Rio Rancho, the fastest-growing city in New Mexico, anchored by major technology employers — Intel, HP, and Comcast — and recently named a 2025 Top 100 Best Place to Live. The senior facility funds land and vertical construction across a ~21-month build, with a financed interest reserve carrying debt service through delivery and lease-up.
Experienced local sponsorship — two multifamily developers as joint guarantors — is paired with Insight Construction, a New Mexico general contractor with directly comparable delivered product, materially de-risking vertical execution. Stabilized NOI of $2,433,636 supports a stabilized value of ~$44.2M at a 5.5% cap and ~7.3% debt yield on the senior, with two independent exits: a stabilized sale (~$46.6M net) or a bank/agency perm takeout that fully retires the facility.
Sponsor is seeking a $33,553,545 senior construction first mortgage (85% LTC) to fund land and vertical construction. Sponsor is contributing $5,921,155 of common equity (15%).
Rio Rancho is the fastest-growing city in New Mexico (100,000+ residents), anchored by major technology employers — Intel, HP, and Comcast — and named a 2025 Top 100 Best Place to Live (Livability) on housing and cost-of-living strength.
Two multifamily developers as joint guarantors. Jerome Maldonado (Quad J): 300 homes, ~2,000 acres developed, $65M apartment value-add. Kyle Mitchell (KLK): MF developer/operator since 2010 across value-add and ground-up.
Insight Construction (NM) has delivered directly comparable product in-market — a 58-unit and multiple 20+ unit builds — with a 37-unit project under construction now. OSHA-certified safety and formal QC materially de-risk execution.
Stabilized NOI of $2,433,636 supports ~$44.2M stabilized value at a 5.5% cap. Exit via a ~$46.6M net stabilized sale or a bank/agency perm takeout — each fully retiring the construction facility.
150 units delivered at $263,165/unit and $316/SF total cost. Even 1BR/2BR mix at attainable ~$1,850 blended rents widens the demand pool against new-build comps.
$33.55M senior at 85% LTC over 15% sponsor common equity. ~7.3% stabilized debt yield and ~76% stabilized LTV on the senior leave cushion to the lender.
goKaizen has surfaced the principal risks of this transaction upfront so lender diligence can focus on the path to a clean close. Each risk is paired with a specific, quantified mitigant — expand any item below.
As a ground-up development, the project carries vertical completion and lease-up risk before stabilized NOI is achieved; there is no in-place income at close.
Experienced local sponsorship is paired with Insight Construction, a New Mexico GC with directly comparable delivered product (a 58-unit and multiple 20+ unit builds; a 37-unit under construction). A financed interest reserve (~$3.43M) carries debt service through delivery and lease-up; the model underwrites a measured ~20 units/month lease-up to a month-28 stabilization.
Stabilized yield-on-cost of 6.17% (untrended) sits close to the 5.5% exit cap, leaving a narrow development spread on an untrended basis.
On a trended basis yield-on-cost reaches 6.45% (a ~95 bps positive spread) and 6.59% at sale. Efficient basis ($316/SF, $263K/unit), ~7.3% stabilized debt yield on the senior, and two independent exits provide repayment cushion to the lender.
Sponsor common equity is 15% of total cost, below the 20–35% typical of ground-up construction.
Sponsor equity funds first (first-loss), so every equity dollar is spent before the first senior draw. Combined guarantor liquidity is $3M+, with partial recourse available from the joint guarantors.
Rio Rancho is a secondary Sun Belt market rather than a primary gateway metro, which some lenders weigh in pricing and proceeds.
Rio Rancho is the fastest-growing city in New Mexico, anchored by a durable tech employment base (Intel, HP, Comcast) and named a 2025 Top 100 Best Place to Live. Attainable ~$1,850 blended rents — below typical new-build pricing — broaden the renter pool and support absorption.
The senior is underwritten at floating SOFR + 450-550 bps (~8.1-9.1% today), creating rate exposure across the build and lease-up period.
A financed interest reserve is sized into the facility to carry debt service through stabilization, and rate structure is open to lender preference (cap/floor). The perm takeout terms out into fixed-rate bank/agency debt, removing floating exposure at stabilization.
Major semiconductor operations and one of the region’s largest private employers, anchoring the local technology job base. HP and Comcast add to a diversified, expanding employment base.
100,000+ residents and sustained in-migration supporting durable rental demand.
Named by Livability on the strength of housing affordability and cost of living — a magnet for household formation and renters.
Rail Runner commuter rail and the regional highway network link Rio Rancho to Albuquerque and north to Santa Fe.
Sandia Mountain backdrop, parks, and trails support resident demand; dual frontage on Inca Rd NE and Idalia Rd NE.
| Line Item | Stabilized | Trended | At Sale |
|---|---|---|---|
| Total Rental Income | $3,268,523 | $3,438,996 | $3,508,348 |
| Other Income | $492,221 | $526,114 | $536,558 |
| Total Potential Income | $3,760,744 | $3,965,110 | $4,044,905 |
| Vacancy & Credit Loss | ($225,645) | ($237,907) | ($243,022) |
| Effective Gross Revenue | $3,535,099 | $3,727,203 | $3,801,884 |
| Operating Expenses | ($1,101,463) | ($1,179,260) | ($1,199,306) |
| Net Operating Income | $2,433,636 | $2,547,943 | $2,602,578 |
Senior funds first-dollar land and construction draws; sponsor equity already in as first-loss.
~21-month build of two 3-story buildings by Insight Construction.
150 units delivered; financed interest reserve carries debt service through lease-up.
Measured ~20 units/month absorption underwritten to a month-28 stabilization.
Stabilized sale (~$46.6M net) or bank/agency perm takeout retires the facility.
25+ years as a New Mexico developer — 300 single-family homes, ~2,000 acres of developed land, 25 retail/office repositionings, and $65M in apartment value-add. Founder/CEO of J. Jacob Enterprises and qualifying broker of J. Jacob Realty since 2003.
Multifamily developer and operator since 2010 across value-add, adaptive reuse, and ground-up development. Author of Best in Class: How to Manage Your Multifamily Asset. Combined net worth and REO schedule to follow.
Delivered comparable in-market product including The Franz (58-unit), El Camino Crossing (20-unit), and Zócalo (21-unit), with The George (37-unit) under construction. OSHA-certified safety program and formal, documented QC systems.
Skin in the game. $5,921,155 of common equity (15% of total cost) committed by the sponsorship and funded first as first-loss capital; partial recourse available from the guarantors.
Sponsor is targeting a close as soon as practicable. SOFR floor, extension options, and rate structure (cap/floor) are open to lender preference.
This memorandum summarizes the request, capital structure, underwriting, and sponsorship. Questions can be directed to the deal team at any time.
The full underwriting model and supporting diligence materials are available with deal room access. Sponsor PFS and REO schedule to follow.
Send a term sheet or indicative quote to the goKaizen deal team. We will respond promptly and coordinate sponsor calls and site visits as needed.
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