Transaction Details
9 Single Family Home
$23,458,370
Encinitas, CA
9 Single Family Home
- Rate: 10.49%
- Loan-To-Value: 65%
- Project Type: 9 Single Family Home
- Term: 18 Months
- Guaranty: Non-Recourse
Transaction Overview
Max Benjamin Partners, Inc. (“MBP”) successfully arranged a $23.46 million construction loan for the ground-up development of nine single-family homes located in Encinitas, California. The financing package refinanced the sponsor’s existing acquisition and development (A&D) loan while providing full funding for the completion of horizontal improvements and vertical construction. The project, situated in one of San Diego County’s most desirable coastal submarkets, will deliver a collection of luxury homes designed to meet the area’s strong demand for new high-quality housing.
The non-recourse loan was structured at 65% loan-to-value (LTV) and achieved a 97% actual loan-to-cost (LTC) by capitalizing on the value created through the sponsor’s successful entitlement and approval process. This “land lift” enabled MBP to secure high-leverage, low-equity financing without requiring any additional sponsor funds at closing. The 18-month facility, priced at 10.49%, fully capitalizes the project through completion, giving the sponsor the liquidity and flexibility needed to focus on execution and marketing.
This transaction underscores MBP’s expertise in structuring complex, high-leverage financing for experienced homebuilders and developers across California’s competitive infill markets. By leveraging strong capital relationships and disciplined underwriting, MBP delivered a creative solution that aligned with the sponsor’s timeline, business plan, and return objectives—further reinforcing the firm’s reputation as a trusted partner for residential development financing.
MBP specializes in debt and equity placement for all asset classes. Our extensive network of unique capital sources in development and permanent financing and extensive capital markets knowledge allows us to tackle a wide variety of transactions, regardless of complexity or size, to benefit our clients.
MBP has a team of dedicated and experienced finance professionals with you at every step. We are consistently improving and expanding our capital market relationships and are committed to exceeding our client's expectations through these relationships, innovative solutions, and outstanding work ethic.
Intermediaries Team
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