CBP Fund V Q2 Results: Consistent Returns, Strong Pipeline

CBP Fund V ("The Fund") continued to deliver strong performance in the second quarter of 2025, generating an annualized 9.26% return.

During the quarter, CBP funded 9 new loans ($19.6 million) with 11 loans paid off ($9.175 million). As a bridge lender, we welcome and encourage these payoffs; they’re a sign that our underwriting has aligned with borrowers’ ability to successfully execute their business plans.

At the end of 2024, we created a sub-REIT structure to hold the Fund’s investments. One of the biggest advantages of the sub-REIT was the ability to pass through a 20% deduction on Fund distributions for qualified investors. This tax deduction was expected to sunset in 2025.  

The recently enacted One Big Beautiful Bill Act (OBBBA) eliminated the sunset provision and made the tax benefit permanent. Further, it increased the deduction from 20% to 23%, offering an even greater upside to qualifying investors.

From where we sit, in the heart of San Francisco’s Financial District, the outlook feels surprisingly optimistic. The slow but steady energy returning to the Financial District, the young people packing into neighborhood bars, rising apartment rents, and positive office leasing activity all stand in contrast to the national headlines. Despite broader concerns such as recession fears, shrinking GDP, and tariff-driven inflation, the local story feels more resilient. Whether it is the AI boom or the return to office finally gaining momentum, the tone feels better. Different. And frankly, slightly euphoric and reminiscent of past strong San Francisco upswings.

We look forward to participating in this next chapter of the San Francisco economy.