The CRE | 8 Advantage
The CRE | 8 lending platform is focused predominantly on infill lots throughout Seattle’s core urban neighborhoods. Our core philosophy is
to finance “who we know, where we know." We specialize in diversifying the portfolio among smaller infill developers throughout urban
neighborhoods that demonstrate strong demand from home buyers. Maintaining our commitment to this niche market allows CRE | 8 principals
to mitigate risk and deliver credit quality expected from our investors. CRE | 8 then helps connect home buyers with quality built homes before
they are listed.
OUR HISTORY
CRE | 8 was founded in 2015 by real estate bankers Adam Heffley and Dennis O'Leary. With 40+ years of experience, the two veteran bankers have accounted for more than $1 billion in construction loans throughout the Greater Seattle area. Their disciplined approach to lending on an infill basis within Seattle city limits has proven advantageous over the years.
Community banks continue to face significant challenges when financing small builders due to strict FDIC oversight and capacity constraints. CRE | 8 was formed in an attempt to satisfy a financing void in the Seattle real estate market and deliver a preferred return to investors that understand their commitment to credit quality.
OUR ADVANTAGE
The merit of development opportunites is often dependent on two factors:
1. The ability to obtain a building permit and/or subdivide the property;
2. Secure financing that allows for this process to take place without depleting it’s profit potential.
CRE | 8 holds an advantage over traditional financial intitutions in each of these areas. Our ability to offer financing solutions that are aligned with the sourcing and entitlement process for builder clients, allow us to achieve a fee and rate structure commensurate with these value-added services.
Financing who we know,
where we know
Single Family Project
-
Before
-
After
Single family opportunities typically start with an existing dwelling with potential for improvement or prospects of greater density on an underutilized parcel. At times, existing improvements are salvaged and remodeled while building a new single family dwelling to the side or rear. The increased density allows a more affordable option for buyers that desire no shared walls with proximity to Seattle, but require less square footage.
In this example, the existing house in Ballard was acquired prior to being listed on the open market for $405,000. The builder subsequently permitted a new single family residence for the parcel and sold the new home for $1,395,000.
Townhouse Project
-
Before
-
After
A typical townhouse project consists of two to eight units in a multifamily zone. At times, the existing improvements may be salvaged while increasing density on the subject property. Zero lot line townhomes differ from condominiums in that buyers are not subject to HOA dues and own the underlying unit lot. Townhomes assist in providing more affordable options for buyers attempting to remain within Seattle city limits.
In this example, the subject property was purchased for $900,000. The builder subdivided the property into 8 unit lots and developed 8 townhomes that were approximately 1,300 square feet each. The townhomes subsequently sold for $572,000 to $595,000.