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Avila Real Estate Capital closes $305M California development facility
The facility supports horizontal development and vertical homebuilding across more than 3,000 lots, and it marks AREC’s second financing for the same master-planned community developer.
Avila Real Estate Capital has closed a $305 million residential development financing facility for a California master-planned community developer, with funding intended for horizontal site work and vertical home construction across more than 3,000 lots, HousingWire reports.
The lender said the transaction is its second financing for the developer, and it also cited the broader environment for acquisition, development and construction lending. HousingWire notes that as bank AD&C credit tightens, effective rates for the kind of lending involved have ranged from 10.43% to 12.59%.
HousingWire frames the deal as notable amid elevated mortgage rates, expensive and harder-to-secure financing, and ongoing affordability and demand pressure on homebuyers.
In total, HousingWire reports that the two financing transactions involving the developer add up to about $700 million in debt, according to AREC founder and CEO Tony Avila.