Pre-Development Financing

Madison Capital Group works with an extensive number of capital sources, who understand the pre-development and development process. Madison works closely with these capital sources throughout the closing process to ensure a smooth closing. 

Active developers are not only faced with financing development costs on on-going projects, but are continually seeking their next development opportunity. Madison Capital Group’s financing experts work with our clients providing pre-development financing to cover soft costs such as:

  • Option or earnest money payments on a purchase and sale contract
  • Legal, architectural, planning and other consulting fees
  • Feasibility studies
  • Obtaining permit approvals
  • Making applications
  • Securing construction and financing commitments
  • Marketing costs – in the case of condominium developments

Case Study

Summary Property Data
Name of Property: The Strand at St. John’s Center
Type of Property: Apartment Development
Location of Property: Jacksonville, Florida
Number of Units: 295

Summary Transaction Data
Transaction Type: Development Financing/Land
Pre-development Capitalization: $61.2 Million
Client: American Land Ventures, LLC


Madison served as exclusive financial advisor for Miami-based American Land Ventures, LLC in arranging land acquisition and pre-development financing for The Strand at St. John’s Center, a mixed-use development comprising of 295 luxury rental apartment units, approximately 250 luxury condominium units, and over 100,000 square feet of office and retail space. The first phase, The Strand at St. John’s apartments was a 295-unit luxury apartment community offering breathtaking views of the St. John’s River from virtually every unit. It is located amidst numerous employment corridors in the Jacksonville CBD and minutes from the San Marco neighborhood, which is known for dining, shopping and entertainment. The Project included 30 residential floors with town homes, lofts, one, two and three bedroom floor plans, and upgraded penthouse units on the 29th and 30th floors. The development plans for the Strand at St. John’s also included a grand lobby entrance with a twenty foot glass wall, panoramic views of the Jacksonville skyline and St. John’s River, a large pool deck, a wellness center with exceptional spa services and other luxury ammenities. Between the apartment and condominium towers, a pedestrian plaza was also created to present a park-like setting for the project and the Riverwalk.

In addition to arranging land acquisition and pre-development financing, Madison was able to further satisfy the developer – American Land Ventures complete development financing needs for this specific phase by arranging early stage joint venture equity, private equity and non-recourse, unsyndicated construction financing while optimizing their returns. The firm has also made a principal investment in the $61 million, 295-unit luxury high-rise apartment community to be built on the south bank of the St. Johns River in Downtown Jacksonville, Florida. The Strand at St. John’s Center is another example of Madison’s ability to structure complex development transactions with multiple capital sources to provide the optimal capitalization for the needs of a multiple-use project.