This spec residential construction loan presented more than a few underwriting challenges. While located in the highly desirable Bird Streets neighborhood of the Hollywood Hills West, the lot was quite small and exceedingly steep, leading to questions on the construction complexity, the builder’s hillside experience and the as-completed value of the home. SFG’s construction manager worked closely with the sponsor and third-party GC to satisfy the many construction-related concerns and elements. Then, three BOVs and two appraisals later, we narrowed the value to a range that allowed SFG to provide a financing solution for this fully-permitted project.
The positives included a terrific design that was well-suited for the submarket while making the most of the small lot and view, a financially capable sponsor with a terrific design and construction team, and a professional broker who held steady the course as SFG worked through underwriting and construction issues.
It took a village to get this one down, and SFG offers its sincere thanks to all who participated, including Nick Lekas, the very capable referring broker, Wilian Menezes of The Valerie Fitzgerald Group in Beverly Hills, our good friend and trusted source for value on LA’s Westside, Mickey Hedges of Coldwell Banker Previews International, and Jeff Zumbo of Major Appraisals in their first assignment with SFG. Jeff’s staff responded quickly and with deep experience in valuing properties within The Bird Streets neighborhood.