This transaction involved the ground-up construction of a spec SFR in Palm Springs’ Desert Palisades community. Designed for this unique, newer, gated community, the house is desert contemporary, well-oriented for both down valley and mountain views, and takes full advantage of the property’s topography and slight elevation change.
The sponsors are very experienced with Palm Springs development and construction. The loan was sized so that no new cash was required at closing…the free and clear lot, coupled with the prepaid soft costs, allowed the LTC math to work, notwithstanding the fact that the newness of the community provided limited sales comp in support of the as-completed value.
This was the first loan closed for these sponsors, as well as for the brokerage professionals who referred the transaction to Seattle Funding Group. During these times with an industry-wide capital drawback impacting availability of construction funds, SFG remains a well-capitalized, fund-based lender, and we expect to see more from these brokers and sponsors!
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