Fident Capital secured a $4.9MM bridge loan to complete the renovation and lease-up of a 16-unit multifamily project in San Diego’s Chula Vista submarket. A national private debt fund provided the non-recourse, interest only financing that repaid an earlier vintage bridge loan and funded remaining project costs.
The well located, three-story project offers the market three story, townhome-style, three-bedroom units with attached two-car garages. The client’s substantial renovation of over $150k per unit turned this blighted property into a vibrant source of middle-income housing in a supply-constrained neighborhood.
Challenges included a lack of direct comparable product within the immediate area, late stage cost increases that pushed the previous loan to its max proceeds and fairly aggressive interest rates. An approaching maturity date for the in-place bridge loan provided a sense of urgency to the financing.
Fident drew from comparables in both single-family and multifamily rental product to support the as-complete value of the product that proved unique to the marketplace. We also procured a lender who understood the borrower’s business plan, the past challenges, the strength of the location, and the dramatic value-add that had taken place. The loan provided interest only payments and flexible loan draw mechanisms that allowed the borrower to expediently complete the business plan.