This was a rather straightforward ground-up construction loan to an experienced homebuilder. It is a spec SFR located in Solvang, CA, a small community in northern, inland Santa Barbara County.
The sponsor possessed an extensive resume and experience with development and construction of large single family tracts. In addition, the sponsor developed and built a terrific Bed & Breakfast and Winery in the same submarket. We included a few photos of the latter, noteworthy projects, and would have included a bottle of their excellent wine if we could! Given the abundant experience, strong credit and financial capacity, the sponsorship component was clearly right over the plate and in keeping with Seattle Funding Group of California’s requirements.
The biggest challenge, then, was establishing the as-completed value. There simply wasn’t much in the way of new inventory, and this submarket appeared to trail most of Southern CA out of the recessionary cycle. At the end of the valuation process, we got there with the knowledgeable assistance of local real estate professionals…and just a touch more equity. Very active in spec residential construction financing throughout California’s coastal band, SFG of CA knows when to head inland…and how to fashion a solution that says YES to qualified and capable sponsors.
SFG of CA also says thanks to Gil Harries of California Construction Loans. SFG of CA has been working with Gil for years, and we’ve closed many loans together. Gil’s expertise is in residential construction lending for owner-occupied homes, a consumer lending program that SFG of CA does not offer. We send those consumer construction requests to Gil, and when Gil receives a call for non-owner or spec residential construction, he knows to call the professionals at SFG of CA.
