LOCATION
Elk Grove, CA
LOAN AMOUNT
$1,679,000
DESCRIPTION
Entitled Land, Build-to-Rent (BtR)
LOAN TYPE

About this Property

Enact Partners provided financing for a $1,679,000 bridge loan with a first TD position to refinance an existing land loan until this experienced infill builder/developer with a strong project resume (showing over 3,000 units built from 1999-2023 totaling nearly $1 Billion in revenue in CA, NV and AZ) is ready to begin construction. The loan funds cover the refinancing and all closing costs. The borrower will inject $191,000 cash for the interest reserve (53.4% LTC).

The borrower went into a contract in April 2021 to purchase 4+ acres of vacant land in Elk Grove, CA. They spent 10 months prepping the property for 50+ single-family dwellings, accompanying common lots, a clubhouse, and associated improvements. The borrower plans to build two-story, three-bedroom, 2.5 bath, attached two-car garage townhomes as build-to-rent (BtR).

Borrower had a $1.6MM loan on the property (55% LTC) that matured in early December 2022 and needed a quick-close on a bridge loan to avoid paying steep penalties. The original plan was to begin site work in summer 2022. However, the borrower chose to wait for material prices to come down prior to starting construction. Borrower now expects construction to start summer 2023.

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Other Information

Enact Partners has been a pleasure to work with on our loans. They are knowledgeable and have a very efficient loan and communication process resulting in a low stress and quick-closing transactions. Even more, they are really nice folks to do business with. I highly recommend Enact Partners and look forward to future business.

– Brian H.