Max Benjamin Partners Secures $23.46 Million Construction Loan For 10 Homes In Encinitas

A construction loan has been secured for the ground-up development of 10 single-family homes located in Encinitas, CA. The loan amount is $23,458,370 for a total square footage of 342,974 across the asset type of 10 single-family residences. The loan terms include a 65% loan-to-value ratio and a 97% loan-to-cost ratio at a rate of 10.49% with an 18-month term.

Summary of transaction details:

• Property Type: Single Family Residences
• Transaction Amount: $23,458,370
• Location: Encinitas, CA
• Asset Size: 10 Single Family Residences
• Building Size: 342,974 SF
• Loan Type: Construction
• Loan Terms: 65% LTV; 97% LTC; Rate 10.49%; Non-Recourse; 18 Month Term
• Brokers: Jason Moyal, Max B. Mellman & Drew Rands - Max Benjamin Partners

The financing is intended to refinance the existing acquisition and development loan and will cover both the horizontal site work and vertical construction for the nine homes. The non-recourse debt achieved a 97% actual loan-to-cost by leveraging the value increase from entitlements and approvals without requiring additional funds from the Sponsor at closing, fully capitalizing the remaining project needs.