The collateral for this loan consists of an approximately 4.05-acre parcel of land which is currently zoned B-2 giving the borrower options for many business uses such as manufacturing, residential and multifamily. It is the intent of the borrower to get final approval for a twelve building, 48-unit, residential development. Each of the twelve buildings would be fourplexes to allow for a multitude of takeout financing options. Each of the units will be three bed, two bath units with rental rates averaging $2,400 per unit. With an extremely strong rental demand in the area, it is anticipated all the units will be absorbed by the market shortly after completion. The fourplex configuration gives the borrower options of selling individual buildings or refinancing the whole project as an investment. Within the same complex, the borrower is currently building 24 units so this would be a continuation of that existing construction project.
Master Loan Amount: $10,500,000
Yield: 10% interest is paid monthly in arrears with payments due on the 1st of each month with a 10- day grace period.
