6 ON CHARNOCK
LFB, on behalf of a repeat client and as part of a larger portfolio, recently arranged the construction financing for the next development of luxury spec homes in Los Angeles. This second project, of a four project portfolio, is comprised of six luxury homes to-be-built in Mar Vista. At the time of request, the existing bridge loan had matured. LFB quickly stepped in, identified a capital source and arranged high leverage construction financing covering a majority of the remaining project costs which included an interest reserve. Prior to closing, and after confirmation of the first trust deed being approved, there was an equity shortfall. LFB, in addition to the first trust deed lender, invested proceeds to cover such shortfall, and became the mezzanine investment group for the project. The mezz piece was secured by the subject property, along with two other developments owned by our client.
Plans for the project include the construction of 6 luxury townhomes averaging 2,400 square feet each, designed as 4 story walk-up homes with 3-4 bedrooms and 600 square foot private rooftop terraces. Each completed home is expected to fetch roughly $2,375,000 at time of sale. LFB is now structuring the debt and equity for the remaining two developments, which are all within the west side of Los Angeles.