About this Property in South Lake Tahoe, CA

South Lake Tahoe, CA — Land Refinance + Horizontal Construction

Loan Amount: $3,350,000
Loan Type: Bridge Loan (Refinance + Horizontal Construction Financing)
Property Type: Entitled Development Land (~6 acres across multiple parcels)
Use of Funds: Refinance existing land debt and finance horizontal improvements, including grading, utilities, paving, and site preparation for a multi-phase residential project

Overview

Enact Partners provided financing in South Lake Tahoe for a borrower advancing a multi-phase residential development. The initial loan in 2024 was structured as a land refinance with funds for early site work. In 2025, Enact refinanced and upsized the loan to $3.35 million, supporting the transition into full horizontal construction.

The collateral included multiple adjacent parcels totaling approximately six acres, all fully entitled for more than two dozen residential units. The site will ultimately host townhomes and single-family residences, with some vertical construction to be financed by other lenders as phases progress.

Loan Structure

The transaction combined a refinance of the borrower’s existing land loan with new capital dedicated to horizontal improvements. The structure featured:

• As-Drawn Interest with Reserve: Ensuring payments were covered during construction milestones
• Draw Schedule: Aligned with phased grading, utilities, and site prep work
• Collateralization: First deed of trust across multiple parcels, reducing risk while supporting the borrower’s broader vision
• Exit Strategy: Refinance into vertical construction loans and selective parcel sales

Tahoe-Specific Considerations

South Lake Tahoe’s regulatory environment requires strict planning and timing. Grading can only occur within defined seasonal windows, and projects must account for environmental protections such as wetlands and slope stability.

The borrower’s experience in the Tahoe Basin proved critical. Years of entitlement work meant permits were in place, and the borrower was accustomed to scheduling around local restrictions. This preparation enabled Enact to structure financing confidently, knowing that seasonal delays and approval hurdles had already been considered.

Outcome

Enact’s loan is funding horizontal improvements that include tree removal, grading, excavation, utilities installation, paving, and traffic control measures. These site-level investments set the foundation for vertical construction to follow.

The project demonstrates how bridge financing plays a key role in carrying developments from raw land and entitlements into build-ready status, creating a pathway for long-term housing supply in a high-demand market.