$2.4M Bridge to Sale: Point Loma Land Next to Liberty Station
San Diego, CA: A seller who had owned and occupied 0.85 acres near Liberty Station for over 20 years needed financing until a developer closed on the land. Helvetica funded a $2,400,000 bridge at 56% LTV that the buyer was pre-approved to assume.
The Borrower's Problem
The owner had run a business on the site for over 20 years. A developer was in escrow to buy the land and build 79 apartments, but the sale depended on a city permit. The owner needed to refinance in the meantime, and the site, with 7,734 SF of older auto service buildings, produced no stabilized income to support a bank loan.
The Helvetica Solution
Helvetica funded a $2,400,000 first-mortgage bridge for 12 months, interest-only, against a $6.5 million market value, a 56% LTV.
The buyer was pre-approved to assume the loan at closing, so the sale would not require a payoff and a new loan at the same time.
Benefit to the Borrower
- Refinance on land with no stabilized income
- An assumable loan that made the pending sale easier to close
- Interest-only payments while the buyer worked through permits
- Time for the buyer to invest about $800,000 in pre-construction work
Deal Highlights
- $2,400,000 first-mortgage bridge, 56% LTV
- 0.852 acres zoned for a planned 79-unit apartment community, average unit about 631 SF
- Midway District plan allows administrative approval, with no Planning Commission or City Council vote required
- Walk score of 81, close to downtown, the airport and the beaches
- Planned exit: buyer assumes the loan, then refinances with a construction loan
Selling land and need financing until the buyer closes?
Helvetica funds bridge and structured loans from $300K–$10M+, typically closing in 3–10 days following receipt of all requested documentation.
