$1.36M Purchase Bridge: Cardiff Ocean-View Lot, Secured by Three Properties
Cardiff-by-the-Sea, CA — An experienced developer set out to acquire a blocks-from-the-beach lot with an aging single-family home, tear it down, and build a new ocean-view twin home. Helvetica funded a $1,360,000 first-mortgage purchase bridge, cross-collateralized with two additional lots the sponsor already owned in Cardiff and Encinitas.
The Problem
The $1.31 million purchase price for a teardown lot in one of North County San Diego's highest-demand beach communities left little room for a slow bank process — and a loan against a soon-to-be-demolished house is not something conventional lenders underwrite. The developer needed purchase money fast, with enough runway to entitle and permit the replacement twin home.
The Helvetica Solution
Helvetica funded a $1,360,000 senior first-mortgage bridge on a 12-month interest-only term, with a 6-month extension option. Rather than lending against the acquisition lot alone, the loan was cross-collateralized with two additional sponsor-owned properties — a permitted twin-home lot across the street and a 2.48-acre homesite in Olivenhain already listed for sale — bringing total collateral to roughly $3.4 million and leverage to a conservative 40% LTV.
Benefit to the Borrower
- Closed a competitive beach-community purchase without bank delays
- Cross-collateralization unlocked better leverage than the single lot allowed
- 12-month term plus a 6-month extension option matched the permitting runway
- Two clear exits: the Olivenhain lot sale and a conventional construction loan
Deal Highlights
- $1,360,000 first-mortgage purchase bridge loan
- 40% LTV against roughly $3.4 million in combined collateral
- 12-month interest-only term with a 6-month extension option
- Three properties: the Cardiff acquisition lot, a permitted twin-home lot across the street, and a 2.48-acre Olivenhain homesite
- Plan: demolish the existing residence and build an ocean-view twin home
- Exit: lot sale proceeds plus refinance into a bank construction loan
Need purchase money secured by more than one property?
Helvetica funds cross-collateralized bridge loans from $300K–$10M+ with closings typically 3–10 days following receipt of all requested documentation.
