WRFCO arranges $40 Million Financing of Home Builder

Western Realty Finance is happy to announce they have secured a $40,000,000 loan for a Ca. residential developer and home builder!

The senior debt, in the form of a WRAP/Revolver loan, is for a 144-unit new construction loans for a sale single family detached and townhouse project in Watsonville Ca., just south of Santa Cruz. The construction finance was sourced from a private debt fund which provided 100% of Cost to Complete the project via the innovative revolver features, and payoff of the prior development loan at time of funding. No additional cash equity contribution from borrowers was required. The developer is LANDO Hillcrest, LLC headed up by CEO Mark Lester. Congratulations Mark! It was a pleasure collaborating with you, we cannot wait to see your project come to life.

Project Highlights:

The project is in a favorable for sale market, including low supply constraints and strong demand for workforce housing in close proximity to prohibitively high-cost coastal CA markets. LANDCO, headed by Mark Lester and team are local owner-developers in the Santa Cruz county submarkets.

Challenges:

A complex partnership, existing Bridge lender payoff, appraisal issues, and significant site remediation required by local regulatory agencies due to prior long-term use as an auto graveyard, made the land development phase complex with unique risk factors. The new senior debt provider was able to work thru these issues and provide a great final loan solution that met the developer’s needs.

The developer has a long history of residential, commercial, land development and construction experience. As Managing Partner, LANDCO had to oversee a smooth LP integration and satisfy investors during the entitlement and financing processes, aand a volatile and rising cost environment.

For a review of your next residential development or construction loan needs, contact David Van Waldick, or James Carenza. Or visit us at: https://lnkd.in/gr_MNEmu

(WRFCO is a CA broker BRE#01065844).

#constructionloan #realestatedevelopment #residentialfinance #Watsonvilleca #SantaCruz