Fident Capital secured $29.8MM of bridge financing for a 78-unit multifamily development at 80% completion in the Bankers Hill submarket of San Diego, CA. The borrower is a vertically integrated architecture and development partnership specializing in infill multifamily developments in core urban areas of San Diego. A New York-based private lender provided the non-recourse financing at 70% LTC prior to TCO, featuring a rate step-down structure upon completion and sufficient holdbacks for completion costs. The loan also includes an escalating exit fee structure, allowing a low-cost refinance after 9 months of minimum interest once the property is stabilized.
The project boasts a sophisticated biophilic design, premium finishes, floor-to-ceiling windows, and double-height penthouses with panoramic city and bay/ocean views, aligning with Bankers Hill’s highest quality residential offerings. Innovative amenities, including parking lifts, a co-working area, and a communal coffee shop that opens to a neighboring pocket park, were thoughtfully included to maximize space and foster community in one of San Diego’s most desirable submarkets.
Closing before construction completion required a granular analysis of the fluctuating budget and schedule, while also moving expeditiously to pay off the existing bank loan, which was fast approaching its maturity date with little to no communication from the incumbent lender. Additionally, the borrower’s decision to transfer deed-restricted affordable housing obligations to another project in the same submarket added complexity, requiring a sophisticated explanation of the transfer mechanics, timing, and documentation requirements. While this strategy added $1.5MM in costs, it created approximately $4MM in value, which the incoming lender approved and financed. Despite the pre-completion status limiting some capital sources, Fident’s intimate knowledge of the submarket and clear articulation of the project’s status, completion timeline, and affordable housing transfer mechanics generated substantial lender interest within a short period.
