Biter says he cannot get the necessary bank financing for his $46m affordable housing project because he lacks real estate development experience.
Banks love the project, but because I have never built anything before, they want me to have an experienced partner. It hasn’t been for a lack of effort, that’s for sure. The numbers make sense, It’s just a matter of whether the bank thinks so. They’re the ones writing the check.
Biter says some individuals have offered to finance the construction, but at interest rates higher than 10 percent, which would result in more than $3-4 million in interest, making the project unaffordable. Biter has already has received six offers for the former site, mostly from groups wanting to build high-end condos. He says he would prefer to sell either a stake in the development or the entire site to an entity that would stay true to his vision.