Financing 336-Unit Condo Project in Sacramento County Despite Fire Zone Concerns

[Denise Webster]

I am an independent private money loan broker working to finance on a promising project. My client is an experienced developer who has completed 165+ homes and holds over $25M in land assets across multiple projects, including the following:

• Project: 336-Unit Condominium Complex

• Location: Sacramento County – Elk Grove area

• Stage: Infrastructure phase (wet/dry utilities, SWPPP, roads, curbs, gutters)

• Equity Position: $15M

• Capital Request: $3.85M to refinance an existing $2.2M loan and complete infrastructure

My client is seeking equity partners who see the long-term potential and want to participate in a portion of the after-construction value. Strong ROI is anticipated given the local demand and development scale, and we're open to creative structures, including equity or JV partnerships.

Unfortunately, many lenders have expressed hesitation due to California fire hazards, despite the fact that Elk Grove is NOT cited as a Fire Hazard Severity Zone. While the site is well-prepared and the infrastructure plan is strong, this environmental concern is affecting financing options.

Has anyone here funded or partnered on a project in a similar zone? I’d love to hear how you approached underwriting or structured your deal. If you're open to opportunities in this space —or have recommendations— we’d greatly appreciate your insights.

Feel free to reply here or DM me. Looking forward to connecting!