LFB recently funded a vertical construction loan for a repeat borrower on their 47-unit single family project in San Diego. The local developer borrowed $8,939,950 last year to develop all 47 lots and build out the first 12 homes. After successful completion of the horizontal development, the sponsors were ready to move on to the vertical construction phase of the remaining 35 homes.
Since the borrowers added so much value to the project by fully developing the site, LFB was able to provide them with 100% of the remaining costs to complete vertical construction on 35 single family homes. The $19,222,130.11 loan featured limited recourse, only subject to carve outs and a completion guarantee. The entire project will offer four different floor plans with an average home size of 1,510 square feet. The sponsor’s experience, strength of the market, and centrally located site made this loan request a very attractive candidate for LFB’s construction program. We will continue to provide high-leverage construction financing for experienced sponsors and developers on their single and multi-family projects nationwide.
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