Acquisition, Development, and Construction (ADC) Loan
Barron's Real Estate Dictionary:
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Acquisition, Development, and Construction (ADC) Loan
A loan whose purpose is to allow a developer to pay for land, put in streets and utility services, and build improvements.
Example: A real estate developer wishes to create a shopping center on a tract of land that he has an option to buy. His first step is to arrange leases with tenants for much of the proposed space. The next step is to secure a commitment for takeout financing. Then, he may secure an ADC loan.
See construction loan.
Example: A real estate developer wishes to create a shopping center on a tract of land that he has an option to buy. His first step is to arrange leases with tenants for much of the proposed space. The next step is to secure a commitment for takeout financing. Then, he may secure an ADC loan.
See construction loan.
| Acquisition Loan, Acquisition Cost | |
| Acre, Acre, Commercial |
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Barron's Real Estate Dictionary
Dictionary of Real Estate Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.
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