$800K Construction Completion Loan: Ocean View Residence
Laguna Beach, CA — A luxury spec home stood roughly 70% complete with no bank willing to fund the last stretch. A first mortgage at 19.5% loan-to-value supplied completion, holding and marketing capital on a 12-month interest-only term, letting the borrower finish the house and sell it on his own schedule.
The Borrower's Problem
The borrowing entity — a corporation guaranteed by its sole principal — had acquired a prime Temple Hills lot in the heart of Laguna Beach Village with plans by a renowned contemporary architect, and carried the project through land acquisition and the bulk of construction with its own capital. With the home roughly 70% complete and certificate of occupancy in sight, the remaining build-out, carrying costs and marketing budget still needed funding.
A partially built, unoccupied luxury spec home produces no income and does not fit conventional underwriting. Banks either decline outright or take months — time that would have stalled the project through a full selling season.
The Helvetica Solution
Helvetica underwrote the finished asset and the exit rather than income documentation. An $800,000 first mortgage was placed against a $3.7 million projected completed value — a conservative 19.5% loan-to-value — with a personal guarantee from a credit-strong principal.
Proceeds funded completion of construction plus holding and marketing costs. The loan was written interest-only over 12 months so carrying costs stayed light through completion and the listing period, with payoff from the sale of the finished residence. All Laguna Beach city and Coastal Commission permits were already in place, keeping the path to certificate of occupancy short.
Benefit to the Borrower
- Completion capital delivered on a partially built, non-income-producing home
- No income documentation or bank committee delays
- Holding and marketing costs funded, not paid out of pocket
- Interest-only payments kept the carry low through the sales window
- Very low leverage preserved nearly all of the equity created in the project
- Sale timed to the market rather than to a lender deadline
Deal Highlights
- Construction completion first mortgage
- Bridge to sale on a luxury spec residence
- Fully permitted, architect-designed coastal project
- 19.5% LTV against projected completed value
- Premier Orange County beach community
Need capital to finish a project?
Helvetica funds bridge, construction completion and takeout loans from $300K–$10M+ on investment and business-purpose real estate, typically closing in 3–10 days following receipt of all requested documentation.
