A longtime, repeat client saw an opportunity to acquire a terrific residential lot at Bighorn in Palm Desert. His objective: to hold the lot in inventory, and when his development schedule allows, to reprise his prior Bighorn success, a high-end, spec residential project also financed by Seattle Funding Group of California and sold in early 2014.
His present challenge is limited excess liquidity given his many other, active, self-funded projects, and SFG of CA needed to tailor a loan structure that accommodated this client’s current situation. It necessitated cross-collateralization with properties in two counties, one of which had significant broken priority with no fund control element. It required the common sense, flexibility and strength of a true portfolio lender working with an equally sensible title insurer – Tom Schwiebert of Chicago Title.
This transaction is an excellent example of what SFG of CA can do for a repeat client and consistent performer. What set this sponsor apart? He has never once requested the maximum leverage. To the contrary, he always strives to keep the leverage to a reasonable minimum while employing his own liquidity to reduce total project costs. His careful selection of properties is evident in the quality of location, extraordinary views, limited supply and market demand for the finished product. Location and low leverage remain the common chords throughout his portfolio, an inventory of infill parcels that are small in number and truly special.
This sponsor is certainly unique, but there are countless quality sponsors SFG has had the pleasure of financing during three decades focused on quality and performance – quality that is at the foundation of SFG’s of portfolio, and rewarding performance in our long-term relationships.