LFB Ventures was engaged by a San Jose based development group with significant custom and spec home development experience. Based on changing fundamentals in the market and a desire to scale proprietary business information management software, the group pivoted to multi-unit development in 2018 by acquiring and entitling 6 sites throughout Santa Clara County.
For the first of its multi-unit projects, the group acquired, assembled and entitled three parcels for the development of 18 townhomes. The project will offer three 4-bed, 3-bath floorplans ranging from 1820 to 1902 square feet with all offering a private rooftop deck. Benefiting from its proximity to Palo Alto and Mountain View and a need for new product, the sponsor anticipates having all units under contract prior to completion of construction.
By stretching the total loan commitment to 85% LTC and utilizing land equity lift, LFB was able to close this loan without the need for any additional cash equity. LFB is now strategizing with the sponsor on two additional projects in Santa Clara County with the next request likely closing within 30 days.
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