Recently Funded - Luxury Home Financing

First Financial Capital provided acquisition and construction financing for an ultra luxury home in Pacific Palisades, California. The loan was for $15,300,000.

This is the second project we have done in the area and we look forward to becoming the lender of choice for Pacific Palisades development projects.

First Financial Capital’s Construction Loan programs are designed to meet your specific financing needs whether you are building a new custom home or doing a ground-up development project.

First Financial Capital financed the construction loan for development of a luxury [SFR (single family residence)](https://www.firstfincap.com/articles/acronyms) behind the Bel Air Gates. The subject development site is over one acre of flat land and is situated on a hillside which offering tremendous views.

The developer has thorough experience developing luxury homes and has a track record of developing some of the most luxurious houses in Los Angeles, California.

**First Financial Capital** successfully funded the sponsor for a construction loan of an ultra-luxury home in the Pacific Palisades. The complexity of this transaction involved paying off existing debt on a near completed project & forecasting the future value of this home which is what FFC does best. The sponsor carried our financing for eight months and paid off the loan without any prepayment penalties.

We understand that it is hard to predict when an asset will sell, so we work with our borrowers to offer favorable renewal terms and no prepayment penalties to give our borrowers a competitive advantage in the real estate space.

First Financial Capital had booked two loans for one property, one for the initial acquisition in the amount of $1,345,000 and the other for the construction loan in the amount of $13,500,000 bringing the total loan amount to $14,845,000.

The borrower needed quick funding for the acquisiton of fee-simple real estate and a clear game plan as to how they would go about developing the luxury home. FFC commited to providing the initial acquisiton funding which would then follow with the construction loan upon having full architecutal plans in hand.

While we do provide interest reserves on our loans, the borrower decided not to utlize it despite being in the midst of the COVID-19 pandemic.

The developer accurately predicted the estimated time of completion and sold the house in a turnkey state in Spring of 2021