The loan — arranged at 62% LTGDV on a 29-month term — was used to purchase the site on London Road and develop 21 one-, two- and three-bedroom apartments and a commercial unit on the ground floor of the building.
Work on the scheme has commenced and it is due to be complete by May 2023.
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This is the second deal that Paragon has completed with Farleigh.
The case was led on behalf of the bank by relationship director Adrian Reeves, with support from portfolio manager Bonnie McCloskey.
“Farleigh is building a great track record of successful developments, with a focus on high-end finish,” said Adrian.
“The company is only six years old but has forged a great reputation in that short period.”
Robert Mulligan, co-founder of Farleigh, added: “We’re pleased to have started the development on this project, which we feel will be popular with those looking for urban living in a thriving city.
“Adrian and the team at Paragon understand our business fully and they are one of the first lenders we turn to when looking for a finance partner for our projects.”