Success Story
Experienced real estate investors sought financing to add two modular ADUs to an existing four-unit property while preserving a favorable low-rate first mortgage. The need for subordinate construction financing and staged funding made this transaction outside the scope of most conventional lenders.
Fidelis Private Fund structured a $550,000 second trust deed construction loan with a holdback for modular ADU development, funded through staged draws. The existing first trust deed remained in place, and the project was underwritten to a projected stabilized value of approximately $3.07MM, resulting in a combined loan-to-value (CLTV) of approximately 46%.
The borrowers plan to refinance both the first and second trust deeds into permanent financing upon completion and stabilization of the property.
Value Added
Fidelis delivered a flexible subordinate construction solution that allowed the borrowers to retain low-cost senior debt while executing a value-add expansion. This transaction highlights Fidelis’ ability to structure creative capital solutions with conservative leverage to support multifamily densification strategies.
Another transaction where Fidelis Private Fund is helping our clients achieve their financial goals.