The 22-month loan will support the delivery of the scheme, which will be located on a historic site on the corner of John Street and Castleward Boulevard, between the city centre and Derby railway station.
The Silk Yard will be built across three phases, with construction expected to be complete within two years.
It will comprise a selection of studios, as well as one-, two- and three-bed apartments, 35% of which have already been reserved.
The flats were designed by architects Corstorphine & Wright and are being built by Bode Contracting.
This is the first scheme Elevate has developed in Derby.
The Silk Yard deal — the sixth collaboration between Paragon and Elevate ¬— was led on behalf of Paragon by relationship director Toby Burgess with support from portfolio manager Joshua Mann.
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Steve Dodd, CEO at Elevate, commented: “The Silk Yard is in the prime DE1 area of the city and offers a collection of high quality, contemporary apartments — all are spacious, light-filled homes, built for a new generation of living and are ideal for young professionals, commuters, downsizers, and investors.
“It has been a pleasure to work with Toby, Joshua and Paragon’s development finance team on these fantastic properties.
“Paragon shared our vision for the development, took the time and care to understand our requirements, and delivered an ideal financing facility that will bring ideal properties to Derby city centre.”
Toby added: “The Silk Yard is an innovative development that ideally reflects our passion for supporting bespoke developments in ideal locations — and I’m delighted to have worked closely with Elevate to make this scheme a reality.
“I look forward to following The Silk Yard’s success and seeing the benefit our partnership with Elevate will bring to Derby.”