Fident Capital secured a $5.1MM construction loan for the development of a 21-unit multifamily project located in the National City, one of the fastest-growing submarkets in the San Diego MSA. A regional bank provided 75% LTC financing at a competitive rate with very low transaction costs.
New construction in the submarket benefits from strong lease-up and some of the highest occupancy rates in the county. The mix of one, two and three-bedroom units will satisfy the demands for a variety of workforce tenants. The infill project sits in the heart of National City, steps away from retail, community amenities, schools, and transit.
Challenges to the project included a lack of directly comparable products within the immediate area as the surrounding inventory is quite dated. After securing competitive bank financing, a poor appraisal process and report led to a significant decrease in the bank’s proposed loan proceeds. In response, Fident segmented the lender’s poor understanding of the market by assembling substantial new market data and delivering it to the lender in a supplemental package, as well as pointing out “areas for improvement” in the original appraisal. The result was that we protected the originally agreed-upon leverage and facilitated a successful close.