News

RC HOBBS GETS FINANCING FOR 33-HOME COMMUNITY

Landmark Capital Advisors, a real estate capital advisory firm specializing in structured finance and private equity, announced a successful $9 million AD&C loan and JV Equity transaction in Rialto, CA. on behalf of the RC Hobbs Company, a long time successful private home builder in Southern California.

“Working with the Landmark team of professionals was a real pleasure. They did an excellent job in sourcing both debt and equity in a timely manner”, said Roger Hobbs, CEO of the RC Hobbs Company.

Landmark raised 96% of the capital stack (80% LTC AD&C loan and 80% of the required equity) to acquire and develop approximately 4.17 acres and construct 33 single-family detached residential units in Rialto, CA. Located north of Interstate 10, south of Highway 66, and west of Interstate 215, the property will be located inside a private, gated community that will offer convenient access to shopping, dining, entertainment and easy access to major freeways. Landmark secured the AD&C loan from a commercial bank and the JV Equity from a private family office investor with whom Landmark Capital has been fostering a relationship for many years. The Landmark Capital team representing the client was comprised of Adam Deermount, managing director, Steve Sims, managing director, and Tom Farrell, director of business development.

“The secondary market and the lack of comparable data available presented financing challenges, but the quality of the sponsor and Landmark’s family office and capital relationships contributed to a successful funding”, said David Kidder, president and managing director at Landmark.

“The scarcity of residential development and the fact that this project will be one of the only detached projects in the local market with home prices at or below the FHA limit for San Bernardino County were key components in making this project attractive to capital providers and investors with deep knowledge of the Inland Empire housing market”, said Deermount. “Projects that fall below the FHA limit will continue to experience higher absorption in the Inland Empire since they allow for substantially lower down payments and less stringent credit standards than conforming loans.”