Rancho Santa Fe, CA

This loan is a second deed of trust on a single-family residence in Rancho Santa Fe, CA. Rancho Santa Fe is an affluent community in North County San Diego known for luxury estates, privacy, equestrian amenities, golf courses, and proximity to coastal cities including Solana Beach and Encinitas. The area is recognized as one of Southern California’s most prestigious residential markets, with properties commonly valued in the multi-million-dollar range. The subject property, located at 16902 Via Cuesta Verde, is a European-style estate situated on approximately 3.66 acres within the gated Fairbanks Ranch community. Built in 1991, the residence contains approximately 11,041 square feet with 5 bedrooms and 4.2 bathrooms. The property features a pool and spa, tennis court, multiple patios and covered outdoor areas, landscaped grounds with ponds and water features, a detached accessory dwelling unit (ADU), multiple fireplaces, a four-car garage, and additional parking. Since purchasing the property in 2023, the owner has completed an estimated $2.0–$2.5 million in improvements, including a complete kitchen renovation, updated bathrooms, new HVAC and ducting, refinished hardwood flooring, interior repainting, smart home automation, security cameras, and a new fire-resistant synthetic tile roof reportedly costing approximately $1.2 million. The purpose of the loan is to refinance the Borrower’s existing loan, which is due. A new $4,000,000 first lien will carry a 6.875% interest rate with a maturity in 2056. Our new second-position loan will result in a combined loan-to-value ratio of approximately 60%. On or before maturity, the Borrower intends to refinance and continue holding the property as an investment. The loan will have a 24-month maturity. The Borrower is a California limited liability company led by an experienced Orange County real estate developer and repeat SO-CAL Capital client. The principal operates a successful custom home development company and has overseen major commercial projects, including The Wave Resort and The Strand Hotel. His real estate portfolio totals approximately $241.3 million, with an estimated $159.5 million in protective equity after liabilities. Financials also reflect strong liquidity, with approximately $4.0 million in recent deposits, $1.25 million in personal funds, and a FICO score of 753.