Fident Capital secured a $15.75MM construction loan for the development of a 6-story, 44-unit multifamily project located in San Diego’s burgeoning North Park neighborhood. A private debt fund provided the loan at approximately 80% LTC, closing as-advertised within the term sheet.
The project will offer the community a mix of one-bedroom and two-bedroom units, including five affordable units. The project rates as an ideal infill play with high supply-constraints, limited competition, high rents, and a locale that offers tenants a rich array of area amenities in the form of bars, restaurants, coffee houses, and boutique shops, within a pedestrian-friendly environment.
The client sourced the transaction off-market and engaged Fident early to assist with the feasibility analysis. Fident remained involved throughout the City’s approval process, updating financial models, and helping vet construction costs before embarking on the capital raise.
Challenges to the project included getting the lender to recognize the land owner’s equity in the deal as they became a part of the development venture, and keeping the lender engaged with the project as the close was halted to allow the developer to resolve last-minute City concerns relating to the historical nature of the existing structures. Eventually, all agreed to a soft close that allowed the developer to resolve the issue before making a draw and putting a shovel in the ground.