SOURCE: Presidio Residential Capital

March 03, 2011 14:40 ET

Private Funding From Presidio Residential Capital Will Boost San Diego Construction Industry With $10.5 Million

SAN DIEGO, CA--(Marketwire - March 3, 2011) - With the construction industry still reeling from stringent bank loaning policies, Presidio Residential Capital announced it has closed a $10.5 million construction loan to Zephyr La Jolla Investors, LLC, to fund a new-home project in La Jolla, Calif. 

Over the last 14 months, San Diego-based Presidio has infused more than $120 million into the regional economy to fund similar private residential projects in an effort to "help the building industry get back on track," according to Don Faye, founder and CEO of Presidio Residential Capital.

The loan to Zephyr will fund the purchase, site demolition and construction of 24 new, low-rise, luxury townhomes to be built in the heart of La Jolla Village. 

"Given the extraordinary opportunity afforded Zephyr Partners to develop this premier La Jolla location, we are enormously grateful to Presidio for their support, particularly in light of today's highly challenging credit environment," said Dane Chapin of Zephyr Partners. 

To be called La Jolla Townhomes, homes will include up to three bedrooms, three bathrooms and 1,643 square feet. Construction is set to begin in July with a projected completion in April of next year. Pricing is expected to begin in the mid-$700,000s. 

Faye, a 30-year real estate veteran with a particular emphasis on the capital side of residential real estate, teamed with a long-term investment partner to fill this void and create Presidio Residential Capital in 2009. 

"The dramatic shifts in the banking industry have made it increasingly difficult, if not impossible, for non-public residential builders to obtain financing," said Faye. "There's a critical need for construction lending alternatives for home builders and we are committed to working together to get building again."

Faye believes that as economic conditions improve, traditional lenders will return to the construction lending market. Until that occurs, however, Presidio is available to fill that liquidity gap for projects in the Western United States and Texas.

Presidio has funded 10 projects throughout California that exceed $120 million, making it one of the leading real estate loan companies in the region. Presidio is dedicated to providing capital to builders with well-located projects in top housing markets, aiming to record additional loan commitments exceeding $500 million over the next 24 months. For more information, visit presidioresidential.com.

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