The borrower is a vertically integrated Florida residential real estate operator that owns more than 350 homes and manages more than 4,300 rental properties across the state. The company has been investing since 2015 and builds approximately 300 to 500 infill single-family homes each year for rental and sale.
For this transaction, the sponsor had developed 56 newly constructed homes on scattered infill sites in the Jacksonville area. Most were three-bedroom, two-bathroom homes of approximately 1,300 square feet, with an average build year of 2025. The homes required no renovation.
The sponsor planned to sell the homes individually over time, primarily to turnkey single-family rental investors seeking long-term yield, while retaining the option to sell to retail buyers.
The sponsor needed to refinance private construction debt across the portfolio and create a bridge period to market and sell the homes. A line of credit offered the flexibility the strategy called for: the full $9 million could be advanced against the portfolio, with open prepayment options to support the sponsor’s planned sales.
Because most of the homes were not yet rented, property yield was not the primary driver of loan size. The sponsor also valued speed, efficient pricing, proactive communication, and confidence that the facility would close on schedule.
CoreVest provided a $9 million, non-recourse line of credit secured by the 56 homes. The 30-month term, extension options, and open prepayment structure aligned with the sponsor’s plan to bring the homes to market and sell them individually over time.
The sponsor was evaluating competing financing options. CoreVest’s certainty of execution, pricing, and reputation helped the facility move forward within the required timeline.
The facility closed approximately 35 days after the sponsor signed the term sheet. Similar transactions can take 45 to 60 days, and bank executions may take longer.
From kickoff, the CoreVest team explained what diligence was needed and why. That helped the sponsor stay engaged and move quickly on its submissions. The sponsor was not left waiting for CoreVest milestones, and the team kept the process moving as information came in.
The borrower described the experience this way:
“With other lenders, we typically have to keep pushing to maintain momentum. CoreVest’s team was proactive and efficient throughout the process, so we did not have to worry about whether the facility and subsequent funding would close on time.”
CoreVest’s $9 million facility gave the sponsor time and flexibility to market the newly built Jacksonville homes and pursue sales to investor or retail buyers. The transaction refinanced construction debt across the portfolio and closed in approximately 35 days.
Key highlights
Have a similar project in mind? This line of credit was originated by Tim Leber, Director of Originations at CoreVest. Call Tim at 949.966.1638 or email [email protected].
For informational purposes only. This is not a commitment to lend. Loan amounts are approximate. All loans are subject to borrower underwriting, credit approval, and additional restrictions. NMLS Number 1627183
