Playa Del Norte St

Playa del Norte sits three or four houses from Windansea Beach, one of the most iconic surf breaks in San Diego. The borrowers, repeat clients we'd worked with through their construction firm, split a single lot and planned to build two 2,500-square-foot townhomes with ADUs, each three stories with balconies facing the whitewater.

We funded $5.6 million for the construction. The location carried the deal: finished homes this close to Windansea, with ocean views from the upper floors, command strong premiums. We knew this because we'd funded projects in this exact pocket of La Jolla before. The builder's track record with us gave additional confidence.

Each completed unit was worth approximately $5 million. The borrowers chose to refinance and hold rather than sell, which told us everything about the long-term value of what they'd built. When the borrower keeps the asset, you know the location delivered.