Gordon Ln #1

Every deal teaches us something. Before 5150 Gordon Lane, we didn't know this hilltop cul-de-sac in Pacific Beach existed, a hidden pocket where homes trade between $5 and $10 million. The deal arrived through a broker, and when we drove out to walk the site, we discovered a micro-market that immediately went onto our radar.

The borrowers had already de-risked the deal significantly: 50% down on the land, plus funding half the construction themselves. Our $2.5 million sat against a massive equity cushion. We knew the builder from multiple prior projects, so we had high confidence in execution. We underwrote the completed home at $5.5 million, which we considered conservative.

As the construction lender, we managed draw schedules and monitored progress throughout the build. Having funded this builder before, we knew his pace, his quality standards, and his subcontractor network. That builder track record is something we've built up over dozens of deals. It's institutional knowledge that makes every subsequent deal faster and lower risk.

The home sold for $7.15 million, $1.65 million above our underwrite. We were right to fund it and conservative enough to be well-protected. More importantly, this deal added Gordon Lane to our mental map. We've since funded additional projects there, each one underwritten faster because of what we learned on this first one. That compounding local knowledge is our real competitive advantage.