A repeat borrower approached LFB with a refinance request to complete the remaining 36 units in an affordable single-family project in Valley Center, CA. This project represented the affordability component of a 623-unit master planned community in northeast San Diego County. The sponsors had already completed and sold the first 16 units in phase 1, but they were in need of vertical construction financing to complete phases 2 and 3.

LFB Ventures was able to provide the sponsors with a $11,642,725 loan to retire the existing construction debt and fund the remaining construction costs for 36 homes. LFB was also able to navigate complex title issues since construction had already begun. LFB also re-negotiated a subordination agreement with a current junior lender.

The project will offer 3 bed/2.5 bath units with an average home size of 1,450 square feet. The units will be offered to new owners who qualify at 80%-120% of the area median income. The sponsor’s outstanding track record and experience, coupled with the strength of the market and the need for affordable housing in San Diego, made this loan request an ideal candidate for LFB’s construction program. We will continue to provide high-leverage construction financing for experienced sponsors and developers on their family projects nationwide.