Fident Capital secured $1.75MM of acquisition financing for a proposed 109-unit multifamily development on Palm Avenue in the vibrant downtown core of La Mesa, California. The borrower is a vertically integrated developer with an extensive track record of successful multifamily projects throughout San Diego County. A private lender provided 65% LTV financing with a 24-month term at a fixed rate of 10.75%, enabling the sponsor to close on this strategically located site.

 The site, a former bank property disposition, was secured at approximately $21,000 per unit – a remarkable basis compared to comparable sites in the immediate area trading at $70,000+ per unit. This advantageous acquisition price reflects both the sponsor’s ability to execute quickly and their sophisticated understanding of La Mesa’s recent zoning updates, which now permit greater density and more flexible development standards in the urban core.

The primary challenge was meeting the aggressive timeline.  Fident  marketed the opportunity within days of engagement, leveraging close capital relationships capable of rapid execution. The firm’s ability to clearly articulate the investment thesis – particularly the value creation opportunity from recent up-zoning – proved critical in securing competitive terms despite the compressed timeframe.

Located on a Main and Main corner in La Mesa’s walkable downtown district, the project benefits from exceptional transit access with the MTS trolley station directly across the street. The proposed development will feature 109  units averaging 862 square feet, with amenity offerings superior to recent comparable developments. The 5,076 square feet of ground-floor retail will capitalize on the area’s zero retail vacancy.

Fident generated multiple competitive proposals by emphasizing the compelling basis, strong sponsorship, and by-right entitlement path. The winning terms met the client’s objectives for both leverage and timing, providing sufficient proceeds while maintaining flexibility to refinance into construction financing upon completion of design and entitlements. The 24-month term provides ample runway for the sponsor to advance through the design review process.