LFB was recently engaged by a developer to complete the financing for a parcel of land in Murrieta, CA that was to be entitled for a mix of commercial and residential uses. The roughly 15 acre parcel sits along the I-215 corridor with high freeway visibility and daily traffic counts. The property, at time of financing, was zoned Office Research Park. The entitlement strategy is to complete a rezone in to three separate uses, which will include a 120 room flagged hotel, 11,000 square foot event center, and a 222 unit multifamily development.
At time of funding there was no existing debt to retire on the property. The loan proceeds were used to cover closing costs, an interest reserve, with the balance being held back in fund control to be used for soft cost expenses related to the entitlement efforts as outlined above. The term of the loan is 12 months, with a 6 month extension option. The loan will be refinance through construction proceeds for the eventual build-out of the approved project.