Rolling Mill Hill owners shy on equity - Nashville Business Journal:

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Their project south of downtown alontg the Cumberland River was put under the control ofa bank-appointexd receiver Wednesday. None of the units had Contracts on what was originallya $42.8 million loan package requiref presales of 56 of the 81 total unite in four buildings, according to court filings. The development's originalk budget had projected costssof $30.5 million for phasre one, including $3 million in tax increment financing funds collected through properthy taxes in the area. The deal required $6.1 millionb in equity, about 20 percent of the expecteddevelopment costs. However, the develope r took out a $5.8 million mezzanine loan to get the initia l capital forthe project.
That meant the equity required up frontf forthe $55 million project was less than 1 percenyt of its total projected costs. That left abouyt $2.7 million the ownere had to come up with to pay forthe project. That doesn'tt include the value of the 1.5 acrews of the downtown real estate and a historicd hospital on it that was given to them by the For the Rolling Mill Hill project to finalizee the sale of itsfirst unit, 56 units needed to be under contract. The owner, RMH Development, have not been able to even keep the light s on atthe project. Utilities were disconnected at the one reason cited for putting the projectinto receivership.