Chelan 67 Lot

1892 Capital Partners provided a 12-month bridge loan to support a 67-lot residential land development project, allowing the borrower to complete preliminary plat approval after their original lender declined to extend financing.

This funding enabled the borrower to move past a critical inflection point and unlock additional value within the project.

The Opportunity

The borrower was in the process of advancing a multi-lot residential development through the entitlement phase.

A key milestone, preliminary plat approval, had already been substantially progressed but required additional time and capital to finalize.

When the existing lender declined to extend, the project faced a potential stall at a critical stage.

Without a timely solution, the borrower risked:

• Losing momentum in the entitlement process
• Delaying project timelines
• Missing a key value-creation milestone

The Financing Solution

1892 Capital Partners structured a 12-month bridge loan designed to provide the borrower with the time and flexibility needed to complete the preliminary plat process.

The structure provided:

• Immediate capital to replace the existing lender
• Time to finalize preliminary plat approval
• Flexibility to pursue multiple exit strategies
• Continuity in project execution

Rather than underwriting solely based on current land value, the approach focused on the value created through entitlement progression.

Why Bridge Financing Made Sense

Land development projects often require capital at transitional phases where traditional financing becomes limited.

Challenges commonly arise when:

• Entitlements are in progress but not yet finalized
• Existing lenders do not extend
• Value has been created but not yet fully realized

Bridge financing allows developers to bridge the gap between milestones, capturing value before moving into the next phase.

Execution & Outcome

1892 Capital Partners successfully supported the borrower through completion of the preliminary plat approval, a major value-add milestone.

As a result, the borrower is now positioned to:

• Sell the project as an approved preliminary plat at increased value
• Pursue development financing for vertical-ready lots
• Continue advancing the project toward full build-out

This transaction reflects 1892’s approach to lending: understanding development timelines, supporting key inflection points, and providing capital that unlocks value at the right stage.