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$27.5M Acquisition & Development Loan
Fident Capital secured $27.5M of acquisition and development financing for a 327 town home development located upon 30.5 acres adjacent to Interstate 15 in Menifee, California.
The project sponsor, who had a long record of successful development, was unable to rely upon their existing lenders because of the destabilized lending environment for residential developments in Riverside County. Fident Capital was able to effectively underwrite the transaction and locate a lender who understood the opportunity. Challenges included proving the vibrancy of attached product in a predominately detached housing market, finding a lender who could advance adequate loan proceeds at close, and validating pro forma pricing.
The loan covered a 24-month term with extensions available. The borrower had the option to convert the Acquisition and Development facility to a $40M construction revolver covering 90% of cost upon commencement of vertical construction. No presales were required.