Loan Purpose
Very experienced developer/borrower obtained a business-purpose construction 2nd Lien Position bridge loan secured by a Malibu single-family residence. Loan proceeds are intended to fund the remaining $450,000 construction and related carrying costs associated with completing a high-end residential new home development. All $450k construction funds will be held in a licensed Funds Control account. The property is non-owner-occupied, and the loan is structured as short-term bridge capital to support completion and stabilization, with repayment anticipated through a future refinance or sale. Loan maturity will be coterminus with the 1st TD that is maturing on May 1, 2026. Our 2nd Trust Deed will likely be extended for 12 months once the 1st TD maturity extends. Completion of the project is estimated within 6 mos. afollowed by the Property Sale.
The investment is secured by a 2nd Trust Deed, junior to an existing first mortgage line of credit with an estimated Maximum loan amount of $5,330,000 from Arixa Capital at a 10.50% rate. Based on the combined loan amount of $5,933,000 and the As-Is value, the transaction reflects a 56.48% combined loan-to-value (CLTV) on the After Repair Value and a 56.24% Net CLTV .
Property Description
The collateral is a 3,998 s.f. 4 bdr, 4 ba, single-family residence in mid-construction, located at 31255 Beach View Estates Drive, Malibu, California, and situated on approximately 2.04 acres within a gated hillside enclave. The Ocean View home is currently under construction and, upon completion, will be a high-quality for sale contemporary residence with extensive custom features including marble and hardwood floors, an elevator, top of line finishes and specatular Ocean Views.
An independent appraisal dated January 14, 2026 concluded an As-Is market value of $6,900,000, reflecting the property’s condition prior to completion. The appraiser also provided a As-completed value at $10,500,000.
What We Like
Meaningful equity cushion when measured against the As-Is appraised value and After Repair Value, even with the loan positioned in second lien status. The property is located in Malibu, a supply-constrained coastal market with demonstrated demand for high-quality residential assets.
The appraisal reflects a well-defined scope of construction already underway, and the short-term bridge structure aligns with a clearly defined exit strategy through refinance or sale upon completion. The interest-only structure and prepaid interest help mitigate early payment risk during the construction period.
$600,000 2nd TD @ 14.50%, SFR, CO, 56.48% CLTV, 12 mo., NOO, $60k Min., 6 mo. guar. int., Malibu, CA
