: First position loan collateralized by part of a retail shopping center in North Aurora, Illinois (about 40 miles west of downtown Chicago, IL). Since acquiring the 120,000 square foot property in 2021, the borrower worked with existing tenants to sign new, long-term leases while simultaneously leasing up the vacancies within the project. Additionally, the borrower updated much of the property to prepare individual parts of the project for sale. The collateral for this loan is the UFC Gym space shown below. The tenant has been removed from the property as the borrower is getting ready to sign a new lease for another fitness user who is willing to pay more in rent. Once the tenant is operating and paying rent, the property will be able to be sold or refinanced. In total, the center is occupied by national tenants like Target, JC Penny’s, Michaels, Petco, Sally’s Beauty, Dollar Tree, and Bath & Body Works. Most of the existing tenants in the shopping center have been leasing the property for over 10 years.
Loan Amount: $7,900,000
Yield: Interest is paid monthly in arrears with payments due on the 1st of each month with a 10-day grace period. *6% is paid out monthly and an additional 6% interest is paid upon any principal paydown and upon the final loan payoff.
Term: Nine months with an optional nine-month extension at maturity. Final maturity date is 11/27/25.
