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. As a Single Family Office, SunChase 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 Value ratio
  • Zoning / Entitlement: completed or in process

Location Preference
  • Southwestern population centers
  • Strong market dynamics
  • Favorable demographics

Representative Transactions

  • Acquisition

    SunChase 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, SunChase continued to see value in the project and worked with the borrower to extend the maturity.

  • Acquisition & Horizontal

    SunChase 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, SunChase created a customized draw process and takedown schedule that met the needs of all parties.

  • Acquisition, Horizontal & Vertical

    SunChase 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 (multi-family detached). SunChase, however, successfully worked with the borrower to understand the value proposition of providing privacy attributes typically not available in for rent product.