#United States #Los Angeles #Arixa Capital #Financing Solutions #Mini Perm

Arixa Capital's New Mini Perm Financing Solution

Arixa Capital, a prominent player in real estate lending, has recently launched its Mini Perm financing option tailored for completed or stabilized residential projects. This innovative solution aims to assist builders, developers, and property operators in managing their construction debts effectively, especially during times of economic uncertainty.

Overview of Mini Perm Financing

The introduction of the Mini Perm Financing at Arixa comes at a critical time when interest rates are higher than usual, leaving many lenders and property owners contemplating the best strategy for refinancing their debts. Unlike traditional financing methods, Arixa’s Mini Perm program provides bridge loans without prepayment penalties and no minimum interest payments, allowing customers more control over the timing of their financing transitions.

Managing Director Seth Davis highlights the importance of flexibility for their clients, stating, "The ability to refine the timing between project completion and permanent refinancing is vital. We designed this Mini Perm solution to maintain such flexibility and create an efficient exit path when conditions are favorable."

Benefits and Structure

The Mini Perm program enables developers to refinance their construction debts into an interest-only structure, preserving optionality and ensuring they can secure the best timing for selling their properties or entering the permanent financing market. This is particularly beneficial for:

• - Stabilized rental properties such as apartments or build-to-rent communities.
• - Completed for-sale residential properties, including condos, townhome complexes, subdivisions, and build-to-sell communities.

With loan sizes ranging from $1.5 million to $10 million, the program's term extends up to 24 months, with potential extensions and first lien positions configured to meet the needs of varying projects. The structural details include:

• - LTV Requirements: Less than 70% for rental projects and less than 75% for for-sale projects.
• - Debt Service Coverage: Projects need at least a 1.10x DSCR at the time of closing.

A Response to Market Demands

This new financing product signifies Arixa's response to the growing need for adaptable financing strategies in the real estate sector. With over 3,000 loans issued since its inception in 2006—financing approximately 14,000 housing units nationwide—Arixa has established itself as a credible source of real estate lending. In 2025 alone, the company funded over $2 billion worth of loans, setting a new company record that also illustrates a rising demand for alternative funding avenues within the sector.