First Trust Deed collateralized by a fully developed 1.1-acre lot in the Obsidian community which is approximately 18 miles south of downtown Las Vegas, Nevada. Obsidian is adjacent to the MacDonald Highlands Community which is nestled in the picturesque McCullough Mountains and has become one of the most sought after addresses in the Las Vegas Valley. Since acquiring the site in May of 2017, the borrower has finished approximately 70% of the development work on this 33-lot community. Of the 33 lots, 10 have been reserved, including three that the borrower is building model homes on. This loan will have a 7,690 square foot home built on it. Currently the borrower has completed approximately 30% of the home and it is anticipated they will finish the construction in July of 2019. Once completed, it will serve as a model home for the community until a buyer is found.
Loan Amount: $3,030,000
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.