San Diego-based Presidio Residential Capital handled 53 transactions totaling $331.4 million in loans, land purchases and joint ventures in 2013 and has even hit the ground running with its own homebuilding firm.
Presidio's homebuilding company, San Joaquin Valley Homes, is based in Visalia. It has committed at least $68.5 million to build five developments with a total of 751 new homes in the Central Valley.
Presidio closed on two projects in early January and said it has more than 20 additional projects in the pipeline in the same region.
On Jan. 31, the firm announced that it had committed more than $38.7 million in financing to build nine residential projects along California's Central Coast. The developments, which range from Santa Maria north to Atascadero, will add 638 homes to the coast "where housing supply has been tight," the company said.
Presidio has teamed up with Pismo Beach-based Coastal Community Builders to develop the residences.
“Together, we’ve been able to purchase and control a large percentage of projects on the Central Coast," said Dave Daniels, Coastal Community Builders vice president of acquisitions and construction. "Presidio has been extremely helpful not only in financing, but also in their knowledge, accessibility and thorough investigation of each project from marketing, entitlements and construction aspects."
The largest of the Central Coast developments is Heritage Square, a 296-home gated community near Santa Maria’s west edge, which broke ground in September. Presidio provided a $6.4 million construction loan for that project.
Sales at the 52-acre Heritage Square will commence next month with model homes open in July 2014.
Legacy at La Ventana, another Santa Maria development that broke ground Oct. 30, will offer 120 rural estate-style homes on 8,000- to 10,000-square-foot lots, and homes from 1,600 square feet to 2,400 square feet with opportunities for add-ons.
“We see the next two to three years as being ideal for investing in the residential sector, and we will continue to pursue top-tier developers and builders in solid markets from Texas and the Rockies west, where housing supply is tight and capital is relatively scarce,” said Presidio principal Don Faye, a 30-year veteran of the real estate finance industry.
Faye, who formerly worked with the Corky McMillin Cos. before helping found Presidio in 2007, added that he expects its loan, land purchase and joint ventures in 2014 to be roughly equivalent to 2013's volume.
The company has funded single-family projects in five Western states, including California.
In San Diego County, Presidio has help fund projects from Chula Vista to La Jolla, but has focused most of its activity outside of this region.
One ongoing project being constructed here is the 20-unit Golden Hill Rowhomes in the community of the same name. Local developer Fit Properties has received an $8.2 million construction loan for the project, which is expected to be completed within the next 18 months.
In October, Presidio, which has about 15 employees overall, announced a partnership with Alta Verde Group to build Alta Verde Coral Mountain, a 32-unit, $43 million single-family development in the Coachella Valley.
The firm has also bankrolled Monte Serena, an Alta Verde Group project of 22 units in Palm Springs that received $15.2 million construction loan.
“We are very excited and optimistic about the coming year, and we’re off to a fast start,” Faye said.
Faye said his firm is also laying the groundwork to bankroll at least three developments in the Las Vegas area.
Presidio provides levered and non-levered equity and non-recourse construction financing for for-sale residential focused development opportunities throughout the Western United States.
Presidio has infused more than $250 million into the economy to capitalize housing development and construction. Along with development, the firm's eventual goal is to fund in excess of $500 million in debt and equity for homebuilding projects in the Western United States, and currently has investments in California, Hawaii, Texas, Idaho and Washington state.