The collateral for this loan consists of 204 partially developed townhome lots located in Colorado Springs, CO (approximately 61 miles south of Denver, CO). These 204 lots are part of a larger 725 lot community know as Victory Ridge which the borrower originally acquired about three years ago. The townhomes will average 1,500 square feet in size with an anticipated sales price averaging over $430,000. This is the third and final takedown the borrower has elected to take from the seller. Lokal Homes has the option to purchase the remaining lots within Victory Ridge and are slated to do so next year. Lokal Homes, the home builder of this project, is averaging six sales per month since sales began. Directly to the north of the property is a newly opened Icon Cinema in a growing “Interquest Corridor”. The entitlement will allow for the development and ultimate construction of 204 townhome lots, all of which are under contract to be sold to Lokal Communities. The sale is structured where the buyer must acquire a minimum of two units per month starting in July of 2022.
Master Loan Amount: $11,832,000
This loan is an acquisition and development tranche loan and therefore the loan will be funded in tranches. The first tranches are anticipated to close on 8/18/2021 with others to follow.
Yield: 10.00% Interest is paid monthly in arrears with payments due on the 1st of each month with a 10-day grace period.
Term: Nine months with an optional nine-month extension at maturity. Final maturity date is 2/17/23.
