Timbercove

Ethos Commercial Advisors was engaged to source construction financing for a 400-lot single-family development in Coos Bay, Oregon, a coastal city of approximately 25,000 residents. The sponsor had invested $7.2 million into the project and sought a loan structure that minimized additional equity requirements.

Ethos was tasked with securing a 65% loan-to-cost construction facility to complete the horizontal development and deliver 150 paper lots, 110 finished lots, and 40 homes. The assignment presented several challenges, including substantial leverage requirements and the need to fund a $5.15 million pump station, an essential but non-revenue-generating infrastructure improvement. Coos Bay’s smaller market size and historical performance volatility also required a compelling demonstration of sustainable demand and economic viability.

Through strategic collaboration and comprehensive research, Ethos identified creative solutions to overcome these challenges. Working closely with the developer and leveraging strong civic relationships, the team successfully negotiated for the City of Coos Bay to finance the pump station, recognizing the project’s role in addressing local housing needs. Additional due diligence highlighted key economic drivers, including a $29 million port expansion and increased tourism supported by the Bandon Dunes Golf Resort and local casino activity.

Ethos ultimately secured a $21 million construction loan through a debt fund, representing 65% of total project cost on a 24-month term. The structure allowed the sponsor to proceed with limited additional capital contribution and advance the project toward completion.