Investment Thesis, Legislative Proposal, & Capital Stack
Pacific Palisades, California
$39.99
The January 2025 Palisades wildfire created the single largest concentrated residential construction lending opportunity in California history. With 1,300 rebuilding permits approved across a single ZIP code, $3.64 billion in active construction underway, and a 9.5% average construction loan rate, lenders positioned in this market stand to capture $684M–$800M in all-in yield over a 24–36 month deployment window. This memo outlines the opportunity, the bottleneck risks, and why this market rewards well-structured lenders.
This memorandum is for informational purposes only and does not constitute an offer to sell or solicitation of an offer to buy any security or loan product. All figures are estimates based on publicly available data as of March 2026. Consult qualified legal and financial advisors before making investment decisions.