Patience paid dividends when Seattle Funding Group closed a residential construction loan for this core, infill three-unit project in Coastal Santa Barbara. SFG first contacted the sponsor almost 6 years ago, we stayed in touch and discussed several central coast projects before the right opportunity came along for all parties involved.
As the banks continue to draw back on their construction lending programs (owing to enactment and implementation of Fed rule changes), SFG is seeing a decided increase in quality construction loan requests from experienced sponsors in core market locations. These are exactly the types of construction transactions in which SFG specializes. Being active in construction lending for most of our 28 years, and running our own in-house, long-established and experienced construction department is something that truly promotes deal efficiency. SFG is uniquely positioned to respond to the increasing demand of construction loans that are spilling into the private money arena, right over our plate.
In the case of the subject transaction, two new units are being added behind an existing, older craftsman-style home on a deep lot that is within blocks of State Street and Santa Barbara’s primary dining and retail corridor. The sponsor paid cash for the property, was partnering with an established and highly experienced regional builder, and the result is a sensible design and product that meets the demand of this supply-constrained market. Plus, a leverage level around 50%.
Yet another excellent example of the type of quality sponsors and construction lending transactions upon which Seattle Funding Group has built its reputation for performance…for 28 years and counting.