Presidio Residential Capital Closes $40.3 Million in Private Builder Construction Loans in Six Months

SAN DIEGO, May 13 /PRNewswire/ -- Presidio Residential Capital, a private real estate construction lending company, has closed $40.3 million in residential construction loan commitments in the six months since the company's formation. Presidio's goal over the next 24 months is to fund in excess of $250 million in construction loans for home-building projects in the Western United States and Texas.

Closed last October, the first loan was $11 million to Cornerstone Communities of San Diego to provide the funding needed to build homes in its Andorra neighborhood within the master-planned community of Eastlake in Chula Vista, Calif. Other loans include $6.2 million closed in January to TRI Pointe Homes to fund the completion of 29 homes in its Traditions neighborhood in Riverside, Calif., another $8.2 million to TRI Pointe Homes for an Oceanside project of 30 homes dubbed Arrowood, and $14.9 million closed in March to McMillin Homes to fund 45 homes in its Santee, Calif., neighborhood of Morning View.

Started by 30-year real estate finance veteran Don Faye, Presidio Residential Capital is filling an urgent need in the real estate industry by providing non-recourse construction loans that can be obtained quickly and efficiently.

According to the Federal Reserve's January Senior Loan Officer Opinion Survey, the two-year trend of commercial banks upholding tightened loan standards has continued into 2010. In fact, 80 percent of the domestic bank respondents reported they had tightened terms on CRE loans substantially over the past year and increased credit standards during the final quarter of last year.

These dramatic shifts in the banking industry have made it increasingly difficult, if not impossible, for non-public residential builders to obtain financing, said Faye.

Although Presidio Residential Capital targets single-family home builders, condominium projects will be considered, according to Faye. Loans, with a minimum loan commitment of $10 million, are being made based on the project and builder meeting specific standards, including the project having a strong feasibility, good product and location.

With the National Association of Home Builders forecasting a need for more than 1.5 million single-family homes per year by 2012, Faye's company is positioned to take advantage of the inability of banks to provide funds to residential builders who still want to build homes. For more information, visit www.presidioresidential.com.

SOURCE Presidio Residential Capital