With interest rates starting to come down, McClure’s buydown on his 45 unit condo development, The Mark, could allow potential buyers to be in the low to mid 2% range, not seen since 2020, virtually eliminating the interest rate obstacle
PORTLAND, ME, November 25, 2022 /24-7PressRelease/ — New England developer, Mark McClure (Managing Partner of GenX Capital Partners), is turning back the clocks on interest rates for his $22MM, 45 unit condo development The Mark at Cumberland Foreside in Cumberland, Maine. Starting first week of December, he will buy down interest rates a whopping 4% for the first 2 years, driving back rates to as low as 2.79% for buyers if you use today’s current residential rate.
“Look, the biggest obstacle for buyers right now are interest rates. Period. The minute we had the three rate hikes of 75 bips each, sales of new condos and homes came to a screeching halt. So, we decided to drive interest rates back to 2020 and alleviate that risk all together. By buying down the rate an unheard of 4% for the first two years, buyers are now in the mid 2’s for a rate and can ride out this current situation as rates start to come back down. With this 4% buy down they actually lock into rates lower than those during the boom times, not more than 18-24 months ago. It’s a no brainer,” stated McClure.
McClure stated he is doing this for the first 10 buyers and 2% for second 10. As for cash buyers, he will offer them a sizeable cash bonus at closing.
The Mark is a high-end mixure of 1 and 2 bedroom units on a tree encasulated, 3 acre parcel off Route 1 in Cumberland, Maine, only minutes to US 95 and US 295 and 5 miles to bustling Portland, Maine and all the major shopping, employment and Universities. Additionally Cumberland was ranked the #1 school system in the state with The Mark residing in the wealthiest zip code in the State of Maine.
“If you’re an investor, with rents the way they are in a Southern Maine, a burgeoning market starving for quality housing, this is easily a 7-8% cap rate acqusition and with this 4% buy-down getting rates under 3%, the cashflow for gthe investor is significant,” McClure added.
Tom Landry and his highly efficient team at Benchmark Real Estate in Portland, Maine are handling all the showings and marketing. For more information go to the link below.
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