Unlocking the Potential of San Diego Housing

A Case Study on Financing Apartment Development

In today’s competitive housing market, developers face unique challenges, from rising construction costs to navigating tight lending environments. Western Realty Finance (WRF) specializes in providing innovative financing solutions to help residential developers bring their projects to life. A recent 24-unit apartment development in San Diego, California, serves as a prime example of how our expertise in construction financing can transform a vision into reality.

The Project: Affordable Housing for a Thriving Market

San Diego is one of the most desirable yet supply-constrained housing markets in the United States. This 24-unit multifamily apartment project includes a mix of one, two, and three-bedroom apartments, as well as a single-family detached rental home. Designed to cater to the affordable housing segment, the development addresses the region’s growing demand for rental properties while offering an attractive investment opportunity.

Key Project Highlights:

• Unit Mix: A blend of apartment sizes and a detached home to attract diverse renters.
• Affordable Pricing: Targeted at the affordable housing range to ensure rapid lease-up.
• Strategic Location: Situated in San Diego, a market with high rental demand and steady rent growth.
• Experienced Developer: Over 20 years of experience in residential construction and affordable housing.

The Financing Solution: Tailored Construction Loan

WRF partnered with the developer to secure construction financing that meets the project’s unique requirements. Our approach focused on structuring a loan with favorable terms to ensure both the project's feasibility and long-term success.

Financing Terms:

• Loan Amount: $3,638,034 in construction financing.
• Loan Term: 18 months with interest-only payments.
• Interest Rate: Competitive rates ranging from 10.5% to 11.5%.
• Loan-to-Cost (LTC): 79%, demonstrating cost efficiency.
• Loan-to-Value (LTV): 54.4%, reflecting a substantial equity contribution.

The structured loan includes a comprehensive due diligence package, ensuring confidence for lenders while enabling the developer to execute the project efficiently.

Why Western Realty Finance?

WRF excels in creating customized financing solutions that align with the unique needs of residential developers. From sourcing competitive loan terms to preparing professional lender submission packages, our goal is to streamline the financing process while maximizing value for our clients.

For this San Diego project, our expertise in residential construction finance helped:

1. Align financing with the developer’s goals.
2. Reduce approval timelines with detailed documentation.
3. Highlight the project’s strong equity position and market demand.

Building Success in Residential Construction Finance

This project exemplifies the type of residential development Western Realty Finance specializes in—strategic, high-potential projects with a focus on affordable housing. By leveraging our expertise and using state-of-the-art tools like our online loan review and submission system, we empower developers to secure the funding needed to succeed in today’s dynamic market.

If you’re a developer seeking financing for a new construction project, contact us today to discuss how we can support your goals. Let’s build the future together.

For more information, visit our loan request form and take the first step toward your project’s success. Western Realty Finance is here to guide you every step of the way.

Western Realty Finance works closely with experienced residential developers to arrange financing for solid for-sale and for-rent projects.

For more information contact David Van Waldick 760-672-0146 / dave@wrfco.com, or James Carenza, 760-519-6189 / jim@wrfco.com.

Or visit our web site: https://lnkd.in/gr5QfQF3