Development Lending

Our Approach

Estrella Capital, a subsidiary of SunChase, provides funding to builders and developers that are unable to obtain financing from traditional sources. We seek to lend to counterparties with a track record of successful developments in preferred markets with a defined exit strategy.

The Sunchase Advantage

Our lending team is headed by seasoned professionals with over 100 years of combined transaction and masterplan development experience. Through association with the SunChase Single Family Office, Estrella Capital is unburdened by regulatory constraints. This allows for flexible underwriting and creative transaction solutions. With the majority of investments funded with in-house capital, we are able to make quick funding decisions with no need to seek out external capital sources.

Lending Parameters

Deal Type
  • Investment of $3 million or greater
  • Up to 5-year term
  • Up to 70% Loan to Cost ratio
  • Zoning / Entitlement: completed or in process

Location Preference
  • Arizona, California, Nevada, and New Mexico
  • Strong market dynamics
  • Favorable demographics

Representative Transactions

  • Acquisition

    Estrella Capital provided $1.6 million in acquisition financing to a local homebuilder for the development a 34 lot community in Avondale, AZ. When re-zoning stretched beyond the original term of the loan, Estrella Capital continued to see value in the project and worked with the borrower to extend the maturity.

  • Acquisition & Horizontal

    Estrella Capital provided a $7 million acquisition and development loan to a land banking firm for a 109 lot single-family development in Northern California. Through close cooperation with the borrower and a public homebuilder, Estrella Capital created a customized draw process and takedown schedule that met the needs of all parties.

  • Acquisition, Horizontal & Vertical

    Estrella Capital provided $11.1 million in acquisition, development and construction financing to a local company for the development of a 153-unit residential project in Peoria, AZ. The traditional lender community was unable to underwrite the project due to the inclusion of a non-standard product type (detached multi-family). Estrella Capital, however, successfully worked with the borrower to understand the value proposition of providing privacy attributes typically not available in for rent product.