Land Development Financing Programs
Land development financing requires patience with extended timelines and sophistication about what creates value at each project phase. Raw land has limited liquidity and income production — which is why most institutional lenders avoid it. Entitled land with approved development rights represents a materially different risk profile. Infrastructure-complete lots with permits in hand are essentially a funded development ready for vertical construction. We lend across all three phases with structures appropriate for each.
Raw land acquisition financing in Palm Beach County typically funds at 50-60% of appraised value, reflecting the entitlement risk and extended timeline. For parcels with identifiable entitlement pathways — land zoned residential in high-demand corridors, commercial infill sites in established nodes, or coastal parcels with potential for luxury residential development — we structure interest reserve provisions that defer payments during the entitlement period so borrowers aren't servicing debt while awaiting county or municipal approvals.
For entitled land progressing to infrastructure development, our acquisition-and-development (A&D) loans combine land payoff with infrastructure funding: roads, utilities, stormwater management, seawall permitting where applicable, and common area development. Draw schedules are milestone-based and tied to civil engineering progress certifications.
Palm Beach County has particular coastal land development considerations: FEMA Zone VE and AE designations affect buildable area and foundation requirements; seawall permits and beach renourishment assessment impacts must be understood before acquiring coastal development parcels; the Town of Palm Beach's ARB process governs all new construction on the island. We incorporate these factors into our land development underwriting.
- Raw land acquisition financing up to 60% of appraised value
- Acquisition and development (A&D) loans for entitled projects
- Milestone-based draw systems for infrastructure funding
Entitlement and Pre-Development Financing
The entitlement process in Palm Beach County is complex and varies significantly by municipality. The Town of Palm Beach's Architectural Commission has authority over virtually all new construction and significant renovation on the island — approvals for Mizner-era Mediterranean Revival or historically consistent new construction require detailed design packages, multiple hearing appearances, and often 6-12 months from initial submission to permit issuance. Palm Beach County's planning department, West Palm Beach, Boynton Beach, and Jupiter each have their own comprehensive plan amendment, rezoning, and development order processes.
We structure land development loans with terms that realistically accommodate these entitlement timelines. A 6-month initial term with extension options for entitlement completion is inappropriate when the entitlement process itself takes 12-18 months in many Palm Beach County jurisdictions. We build the actual regulatory timeline into our loan structures.
Pre-development costs — environmental Phase I and II assessments, soil testing, site engineering, traffic studies, wetland determination, and application fees — can run $50K-$300K before a shovel touches the ground. Our land loans can include allocations for these necessary pre-construction investments, ensuring developers aren't draining personal capital to fund regulatory compliance work that ultimately benefits the project's value.
- Funding for entitlement-period carrying costs and professional services
- Loan terms structured around actual Palm Beach County approval timelines
- Pre-development cost allocations for engineering, environmental, and regulatory work
Infrastructure and Site Improvement Funding
Infrastructure installation in Palm Beach County carries specific requirements and costs that differ from inland markets. Coastal construction requires wind-rated utilities installation, elevated roadway design in flood-prone areas, and stormwater management systems sized for the county's intense rainfall events and FEMA floodplain requirements. Seawall construction or rehabilitation is a significant cost item for waterfront development parcels in Intracoastal and canal-adjacent communities throughout Jupiter, Tequesta, and North Palm Beach.
Our development loan draw schedules are coordinated with civil engineering milestone certifications — grade and fill, road sub-base, utility rough-in, finished road surface, final inspections — rather than generic national construction draw templates that don't reflect the specific infrastructure requirements of Palm Beach County coastal and near-coastal development.
For larger multi-phase developments — residential subdivisions or mixed-use projects where lots are sold or transferred in phases — we can structure phased financing that matches funding disbursement to phase completion and lot sale revenue, reducing interest costs on the full project while providing adequate capital availability for each active phase.
- Coastal-specific infrastructure financing (wind-rated utilities, elevated design, stormwater)
- Seawall and waterfront improvement funding for Intracoastal-adjacent development
- Phased draw structures for multi-phase residential and commercial subdivisions