LFB recently arranged financing to complete the horizontal infrastructure work on a single family home subdivision in Galt, CA. The project is entitled for 50 single family detached homes, with the ability to add Accessory Dwelling Units (ADUs) to each lot. The lots range in size from 6,500 to 13,000 square feet. The property at time of funding was in raw condition.
Galt is approximately 20 miles south of Sacramento and has a history of attracting residents to its excellent school system, low crime rates and charming environment. Given the undersupply of residential units, particularly new construction, this project presents a unique opportunity to seize on that demand.
The loan was structured as an initial advance to cover closing costs, with a holdback for soft costs and horizontal construction work over a 12 month term, with extensions. In addition to the value of the property, part of the loan sizing contemplated value pulled from the project obtaining Statewide Community Infrastructure Program (SCIP) approval which will further offset expenses owed by the developer/builder.
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