Luxury Home Construction in Valley Village
$2,900,000 Loan | Ground-Up Construction | 75% LTV
It All Started with a Vision
Our borrower wanted to take a distressed property, split the lot, and build two 3,500 square foot luxury homes that would each include a pool and a cabana. With over 20 years of experience, he had built several single-family and multifamily properties in the past and was well positioned to take on this project.
The Property Before:
About the Loan
The borrower, looking for a lender who could close quickly while providing a straightforward draw process, ultimately came to Spreo Capital. In February 2021, the property was purchased for $1,900,000.
The total loan amount was $2,900,000, with $1,425,000 covering 75% of the purchase price.
The remaining $1,425,000 was utilized as a construction holdback, accounting for 75% of the total construction budget.
A Successful Build with an Exceptional Exit
The build was ultimately successful, and the two properties sold for $3,225,000 and $2,965,000 respectfully, for a combined $6,190,000. This total represented a final ARV of 47%, which exceeded Spreo Capital’s own expectation of a combined sales amount.
Because of the success of this project, we have subsequently provided financing on additional projects with the Borrower and look forward to a continued successful capital relationship.
The Properties After:
