LFB was approached by a client looking for construction financing to complete remaining horizontal work, plus the construction of 2 model homes and phase 1 of a 36-lot subdivision. The project consists of 36 previously graded lots, that sit up on rolling terrain, west of the 15 freeway with sweeping views of north county San Diego. Most of the land surrounding the project is rolling, undeveloped acreage which offers privacy and open space for the future homebuyers of this community.
The construction loan was used to retire an existing land loan, plus complete all remaining horizontal work and vertical construction of 2 model homes and first phase of production. The loan stretched to 85% of costs which prevented our borrower from needing any further equity injection to balance the capital stack. The homes will range in size from 2,726 to 3,860 square feet and start in the low $1 millions. The financing will be paid down through home sales, which will then roll into another loan facility to build phases 2 and beyond.