Case | HBS Case Collection | December 1994 (Revised September 2011)

The Millegan Creek Apartments

by William J. Poorvu and John H. Vogel Jr.

Abstract

Fleet Bank is considering a construction loan for a 390-unit apartment project in Austin, Texas. The case describes the location, market, product, and other real estate factors the bank needs to consider in making this loan. Also discusses the financial and construction risks involved in structuring this kind of credit facility.

Keywords: Property; Financing and Loans; Banks and Banking; Housing; Risk and Uncertainty; Construction; Credit; Real Estate Industry; Banking Industry; Texas;

Citation:

Poorvu, William J., and John H. Vogel Jr. "The Millegan Creek Apartments." Harvard Business School Case 395-118, December 1994. (Revised September 2011.)