Team Hachem placed a $3,000,000 line of credit collateralized by two parcels of land totaling 10 gross acres out of a three-phase, mixed-use, master planned community in Moreno Valley, California. The master development is on 19 gross acres and consists of 237 apartments and duplexes and a 22,000 square-foot office and retail center. The funds will go towards phase two horizontal work as well as utilities work for the shared road between phases one and two. This was a City mandate in order to issue a certificate of occupancy for phase one, comprised of 125 units and expected delivery by end of the year.
Development around Moreno Valley has been slow until recently and while COVID-19 did not materially impact the multifamily market in the area, many lenders were hesitant to lend there. The Sponsor is a major developer and real estate owner throughout Riverside County. The Hachem Team focused on the market demand, Sponsor’s credentials and potential repeat business for the Lender. The Sponsor was pleased with the line of credit facility as it will incur interest only when funds are drawn. The alternative land loan options would have been significantly more expensive and very difficult to achieve.