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PALM DESERT, CA-The developer of the upscale Villa Portofino continuing care retirement community here has secured $21 million in financing from La Jolla-based private lender Scripps Investments & Loans Inc.

The loan, which has been structured in the form of a promissory note secured by a first trust deed (plus additional collateral), will be used for the continuing development of the 73-acre Villa Portofino project. Specifically, the funds will finance the construction of 46 units here, as well as a 30,000-sf clubhouse; fitness center; pool; and other common amenities.

“With us, the developer obtains an early round of debt-financing, often utilizing traditional bank financing as the exit strategy after progressing with the project,” says Jeffrey Lubin, Scripps’ president. “Our investors receive high yields in a real estate-secured investment during the early stages of the project, without requiring the owner to give away future profits for the life of the project,” he adds, explaining that it’s a “true win-win situation for all involved.”

Villa Portofino I LLC has been developing the luxury retirement community for the past three years here. Scripps previously provided a $10-million loan for the project, which is rising on a 75-acre parcel located on Country Club Drive, between Monterey and Portola. That financing enabled the construction of 20 units, as well as some models. In addition, it did fund initial work on community facilities. Upon completion, the development will include 414 residential units, the clubhouse, a healthcare center and a variety of other amenities. Prices here range from the mid-$200,000s to the low $700,000s.

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