PICCARDFINANCIAL
 310.363.5136Submit a Deal
Active mandates · Ground-up & structured

Construction Financing

Ground-up capital for development execution.

Piccard Financial arranges construction loans and structured capital for commercial real estate sponsors, developers, and family offices pursuing ground-up development, affordable housing, ED1 projects, land carry, and cost-to-complete financing.

Submit a Construction DealView Transactions

Capital Strategy

Construction financing is won before the lender call.

We evaluate the budget, basis, entitlement status, guaranty structure, takeout plan, sponsor liquidity, timeline, interest reserve, and exit before approaching the market.

  • Bank, debt fund, private credit, and construction-to-perm options
  • Leverage, pricing, recourse, reserves, and completion risk positioned up front
  • Targeted capital outreach designed around the project's business plan

Construction Coverage

Development capital from land through certificate of occupancy.

Project Types

Ground-Up & Adaptive

Capital Sources

Banks & Funds

Structures

Senior + Equity

Markets

National

Overview

Construction loans require a different capital story.

Construction financing is not simply a leverage quote. Lenders evaluate whether the sponsor can complete the project, whether the budget is credible, whether the collateral basis is defensible, and whether the exit is realistic under market conditions.

Piccard Financial helps sponsors translate a development plan into a lender-ready capital request, with the structure, diligence package, and market positioning needed to create competitive lender engagement.

We work across stabilized takeout planning, affordable housing and ED1 executions, market-rate multifamily, mixed-use development, land carry, pre-development, and select commercial ground-up projects.

Typical construction financing considerations

  • Loan BasisLoan-to-cost, loan-to-value, land basis, imputed equity, costs incurred, and remaining cost-to-complete.
  • BudgetHard costs, soft costs, contingency, interest reserve, lender fees, permits, carry costs, and offsite requirements.
  • RecourseCompletion guaranty, repayment guaranty, burn-off structure, bad-boy carveouts, and sponsor liquidity coverage.
  • ExitSale, refinance, HUD, agency, bank perm, lease-up bridge, stabilization, or long-term hold strategy.
  • ExecutionDraw process, inspection cadence, construction timeline, GC strength, pre-leasing, affordability restrictions, and entitlements.

Common Use Cases

Capital for projects that need precision.

Each construction financing assignment is positioned around the sponsor, entitlement posture, basis, timeline, and final exit.

Ground-Up

Multifamily Construction

Senior construction loans for market-rate and affordable multifamily projects, including lease-up planning, interest reserve sizing, guaranty negotiation, and permanent takeout strategy.

Affordable Housing

ED1 & Affordable Projects

Capital strategies for ED1 and affordable housing projects where lender diligence must account for rent restrictions, voucher assumptions, delivery timing, and specialized takeout options.

Early Stage

Pre-Development & Land Carry

Financing for land acquisition, entitlement carry, soft costs, plan revisions, permits, and sponsor working capital before a project is ready for full vertical construction debt.

Rescue Capital

Cost-to-Complete Financing

Capital for partially completed projects, budget gaps, lender fatigue, maturity pressure, or sponsor recapitalizations where the key question is completion certainty.

Hybrid Capital

Senior Debt + Structured Equity

Capital stacks that combine senior construction loans with preferred equity, JV equity, mezzanine, or gap capital when a traditional senior loan alone does not meet proceeds needs.

Takeout Planning

Construction-to-Perm Strategy

Execution plans that align construction debt with the eventual refinance, sale, HUD, agency, bank, or life company takeout, reducing refinance risk before closing the construction loan.

Execution Process

From construction budget to capital markets execution.

Our process is designed to make the financing request clear, credible, and properly matched to the right lender audience.

Project intake

We review site control, entitlement status, plans, unit mix, budget, schedule, costs incurred, sponsor profile, liquidity, and the intended use of proceeds.

Underwriting and structure

We assess loan-to-cost, loan-to-value, interest reserve, contingency, guaranty exposure, takeout risk, and the proceeds level the market is likely to support.

Lender packaging

We prepare a lender-facing narrative and document package that frames the project clearly around budget, basis, market demand, sponsor strength, and exit strategy.

Targeted lender outreach

We approach the correct audience, which may include banks, debt funds, private credit, affordable housing lenders, construction-to-perm sources, and structured equity providers.

Term sheet negotiation

We compare and negotiate leverage, pricing, fees, reserves, recourse, prepayment flexibility, draw procedures, closing conditions, and reporting obligations.

Closing coordination

We remain involved through diligence, appraisal, third-party reports, construction consultant review, legal documentation, funding, and the initial draw process.

Relevant Transaction

Construction capital placed for Los Angeles multifamily.

Inspire Echo Park multifamily construction financing arranged by Piccard Financial

$30.36MM

Inspire Echo Park

Construction financing arranged for a multifamily development in Los Angeles, positioned to institutional capital around basis, sponsor execution, project timeline, and takeout strategy.

Asset TypeMulti-Family
ExecutionConstruction Loan
Capital SourceBank
MarketLos Angeles, CA

Related Services

Other capital solutions that often pair with construction.

Transitional Capital

Bridge Loans

Short-term capital for lease-up, maturity payoff, acquisition, repositioning, and transitional assets before permanent financing.

Explore bridge loans →

Capital Stack

Structured Equity

Preferred equity, JV equity, co-GP capital, mezzanine, and recapitalization strategies for development and value-add projects.

Explore structured equity →

Takeout Strategy

Permanent Loans

Long-term financing and refinance options used as takeout capital after construction completion, lease-up, or stabilization.

Explore permanent loans →

Common Questions

Construction financing questions, answered.

Direct answers on sizing, guaranties, and structure — based on projects we finance, not generic market copy.

How much will a construction lender fund?

Construction loans are generally sized to the lesser of loan-to-cost and a coverage test on the takeout — commonly up to 65%–75% of total project cost for market-rate deals, with the permanent balance capped at a level the stabilized building can service. We recently arranged a $30.36MM construction-to-permanent loan at 70% of cost for a 90-unit Los Angeles development.

What do construction lenders require before quoting?

Site control and entitlements in hand, a fully-costed budget with hard costs, soft costs, and contingency, a realistic schedule, a general contractor the lender can underwrite, and a sponsor with completed comparable projects and the liquidity to stand behind the build. Lenders finance execution — not entitlement risk.

Do I have to personally guarantee a construction loan?

Usually at the start — but the guaranty is negotiable. Completion guaranties and repayment guaranties can be structured to burn off as the project hits milestones: completion, lease-up, and a target coverage ratio. Negotiating the burn-off is one of the most valuable points an advisor can win in a construction term sheet.

Construction-to-permanent or standalone construction loan?

Construction-to-perm locks the takeout on day one, eliminating the risk of refinancing a finished building into a market that has moved against you. A standalone construction loan can offer more leverage or flexibility but leaves takeout risk open. The right answer depends on the exit — sale, agency, bank, or long-term hold.

Can 100% affordable projects in Los Angeles get financed under ED1?

Yes — Executive Directive 1 has created a pipeline of streamlined, by-right 100% affordable projects in Los Angeles, and a specific universe of banks, debt funds, and mission-driven lenders is actively financing them. Sizing, reserves, and takeout structure differ from market-rate deals; approaching lenders who know the program is most of the battle.

Submit a Construction Deal

Send the project overview and available deal materials.

We will review the opportunity and respond with preliminary capital direction, likely lender audience, leverage, pricing, structure, and next steps.

Submit a Deal

Advisory led by Andrew Sawyer, Partner & Head of Capital Markets · CA DRE #02074085 · Piccard Financial Broker Lic. #02159069