About this Property in Perris, CA – Predevelopment Bridge Refinance

Inland Empire, CA — Predevelopment Bridge Refinance

Loan Amount: $2,240,000
Loan Type: Bridge Loan (Refinance + Predevelopment Funding)
Property Type: Residential development site planned for detached homes
Use of Funds: Refinance a maturing loan and fund engineering and architectural work to secure an RTI grading permit ahead of a construction loan or sale

Overview

Enact Partners provided bridge financing for a residential development site in California’s Inland Empire. The borrower acquired the property in 2021 and entered this loan with meaningful equity already invested. The immediate objective was to refinance a maturing note while keeping the development plan moving forward.

In addition to refinancing existing debt, the loan included dedicated funding for predevelopment work—engineering and architectural scope required to secure an RTI grading permit. This permit milestone is a key step in positioning the site for its next phase and improving execution timing for the borrower.

The business plan targets detached homes of approximately 2,100 square feet each. With an appraisal supporting a significantly higher value as the project advances, the financing provides a clear path toward either a construction loan takeout or a sale to a qualified buyer.

Loan Structure

The $2,240,000 bridge loan was structured to support forward progress through permitting milestones:

• Loan Proceeds: Refinance of existing debt and funding to advance predevelopment scope
• Predevelopment Holdback: Dedicated budget for engineering and architectural work tied to the RTI grading permit
• Term: 12-month bridge term aligned with entitlement and permitting execution
• Interest Support: Interest reserve included to help manage carry costs during the predevelopment period

Inland Empire Market Dynamics

Residential demand across the Inland Empire continues to support new housing delivery, while finished lot supply remains constrained in many submarkets. Sites that can move efficiently through permitting and grading approvals are better positioned for the next capital event—whether a construction loan or a sale to a homebuilder or developer.

Sponsorship

The sponsor’s plan centers on advancing permitting and grading approvals to unlock the next stage of development capital. The loan structure supports that execution by pairing the refinance with targeted predevelopment funding, allowing the sponsor to maintain control of timing and decision-making as milestones are achieved.

Exit Strategy and Expected Outcome

The primary exit strategy is a construction loan following completion of predevelopment work and permit progress. A secondary option is a sale of the site once the RTI grading permit is secured and the project is positioned for the next phase. Enact’s role in this transaction was to provide bridge capital that allowed the borrower to refinance existing debt, fund required predevelopment work, and move toward the next capital event with flexibility around timing.