New Hawiian Constuction Loan

1892 Capital Partners provided a $265,625 construction bridge loan to Paramount Legacy Developments, LLC for the development of a new single-family residence located at 16-2067 Rainbow Drive in Pahoa, Hawaii.

The financing was structured to support the ground-up construction of a new residential home intended for resale upon completion. By providing flexible capital during the construction phase, 1892 Capital Partners helped the borrower move forward with development while maintaining a clear path toward a successful exit through sale.

The Opportunity

The project consists of the construction of a new 1,832-square-foot single-family residence with an attached garage in Pahoa, Hawaii.

As residential inventory remains constrained across many markets, well-executed new construction projects continue to create opportunities for experienced developers to meet housing demand while generating value through strategic development.

To capitalize on this opportunity, the borrower required a construction financing solution that would support the majority of project costs while providing the flexibility necessary to execute the build and bring the property to market.

The Financing Solution

1892 Capital Partners structured a 12-month construction loan totaling $265,625 at a 12% interest rate.

The financing featured:

• 61.77% loan-to-value (LTV)
• 94.12% loan-to-cost (LTC)
• Capital designed specifically for new residential construction
• Flexible execution tailored to a speculative build-for-sale strategy
• A clear path to repayment through the future sale of the completed home

With a high LTC structure, the financing provided meaningful leverage while maintaining a disciplined risk profile. The loan allowed the borrower to move forward confidently with construction and project execution.

Why Construction Bridge Financing Made Sense

Ground-up residential construction projects often require financing solutions that differ from conventional lending programs.

Construction bridge financing can be particularly effective when:

• A borrower needs capital to fund new development
• Traditional lenders are unable to accommodate project timelines or structure
• Speed and certainty of execution are critical
• The repayment strategy is tied to the future sale of the completed asset

By utilizing a construction bridge loan, the borrower secured the capital needed to advance the project while preserving flexibility throughout the development process.

Execution & Outcome

1892 Capital Partners successfully closed the construction loan, providing Paramount Legacy Developments, LLC with the financing necessary to move forward with the development of the new residence.

The borrower is now positioned to:

• Complete construction of the new home
• Bring a newly built residential product to market
• Execute a sale-based exit strategy
• Capture value created through development and construction

This transaction highlights 1892 Capital Partners' ability to provide practical financing solutions for residential construction projects, helping experienced borrowers move from concept to completion with certainty, flexibility, and execution-focused capital.