Financial Compound has arranged a $23 million unentitled land refinance for a 5,000 acre land assemblage in a southern California coastal plain. The assemblage is to be developed into a low density exclusive community with a few thousand acres of private preserve, signature golf course, club-house, spa and equestrian facility. This refinance pays off the existing recourse debt, returns $5 million of costs to the borrower that has been spent on the site to-date, and funds all remaining entitlement costs necessary to obtain ‘paper-entitled lot’ status.
Land loans terms include a 12% interest rate, 5 year term, interest-only, non-recourse, no prepayment penalty.
Commercial mortgage broker Financial Compound was instrumental in helping the borrower find this capital provider, in a marketplace where un-entitled land financing is rare. Financial Compound has closed more than 15,000 acres of un-entitled land financing with this particular capital provider.