First Trust Deed collateralized by a fully developed 1.3-acre lot in the MacDonald Highlands Community which is approximately 19 miles south of downtown Las Vegas, Nevada. The MacDonald Highlands Community is nestled in the picturesque McCullough Mountains which has become one of the most sought after addresses in the Las Vegas Valley. Finished lots on this street are currently selling for more than $2,000,000 for just the lot. Although no homes have sold on this 51-lot street yet, some homes are anticipated to be sold for more than 10 million. This loan is to refinance the acquisition of the lot and build a roughly 13,000 square foot home. Since pulling a building permit, the borrower has completed the framing of the home and has begun working on the interior plumbing and electrical systems. As is typical for Blue Heron, they build one “showcase home” to show off all the newest and most innovative architecture, design, and technology. When they do this, they typically will pay off the loan with their own investor capital once the home is completed and ready to tour.
Loan Amount: $5,900,000
Yield: 10.25% (Principal Balance ≥ $100,000); 10.00% (Principal Balance < $100,000) Interest is paid monthly in arrears with payments due on the 1st of each month with a 10-day grace period.
Term: 9 months with one optional nine-month extension period at maturity.