Homebuilder developing two townhouse-style duplex buildings (4 units, 2,869 SF each) in highly sought after in-fill neighborhood. This was the first spec project over $1MM for the builder and, consequently; they were unable to secure a loan from their normal lending partner.

Given the scarcity of new construction in that market and projected profit margins, Southeast Bridge Capital provided 91% of cost to Borrower (taking a second deed of trust on another property owned by the Borrower to bring overall LTC to 85%).

Southeast Bridge Capital’s takeout will come via sale of the individual units. Duplex construction (splitting single family lots into two dwelling pads) significantly reduces builder’s cost per unit and creates significant value for the project. Average list price for comparable product coming to market was observed at $245/SF, well above Southeast Bridge Capital’s basis of $101/SF.