90% LTC Debt Fund Capital Targeting Horizontal Lot Developments

Capital Spotlight – Highlighting featured capital investors. We regularly publish the detailed criteria of our most unique real estate capital sources.

Valencia Realty Capital recently reconnected with a well-established private credit relationship to discuss their capital offerings heading into 2026. While this group remains active in the bridge lending space, focusing on multifamily, industrial, and hospitality assets, they highlighted a specific niche where they believe they hold a competitive edge: Residential horizontal lot development loans.

This lender is currently targeting master-planned residential lot development projects in major suburban markets, offering high-leverage, non-recourse construction loans of up to 90% loan-to-cost. Their product is tailored for experienced developers delivering pre-sold lots to national homebuilders and offers a compelling solution for sponsors seeking capital efficiency in the midst of tight liquidity across the development landscape.

Highlighted Product: Construction Debt for Horizontal Lot Developments

This capital source provides non-recourse construction financing of up to 90 percent LTC for experienced sponsors with well-structured projects. To achieve this level of leverage, however, certain key criteria must be met. It is important to note that Hard deposits and executed contracts with national builders are a requirement, and the lender will underwrite sponsor deposits as part of the equity stack to boost total leverage sizing.

Targeted Market and Sponsor Profile

This lender is primarily focused on suburban growth markets adjacent to the top 25 metropolitan statistical areas. For the right opportunity, they may consider select projects outside this footprint, though leverage and pricing may be adjusted accordingly.

Ideal sponsors will have a demonstrable track record in horizontal lot development and a history of successful transactions with national builders. While the group is open to a range of development experience, prior execution on similar project types is a prerequisite for accessing higher leverage terms.

Conclusion

This private credit group is proactively building its 2026 pipeline and remains highly motivated to deploy capital into the residential lot development sector. With clearly defined criteria and the ability to move quickly, they represent an attractive capital partner for sponsors pursuing well-prepared, builder-backed deals. If you have a project that includes full underwriting materials, market analysis, sponsor bios, and builder contracts, please reach out to Valencia Realty Capital to discuss whether this group is a potential fit.

If this capital source may be of interest, book a call to discuss a potential capital arrangement.

Read our last Capital Spotlight: “National Bank Edging Out Regional Competitors on Multifamily Bridge Terms”