The collateral for this loan is approximately 26 acres of land that will consist of 244 townhome lots located in Cypress, TX (approximately 25 miles northwest of Houston, TX). Most of the 244 units are presold as investment properties to the borrower’s clients. The final plat map has been recorded and development work is ongoing. Since acquiring the site in March of this year, the borrower has completed the grading of the land and has installed most of the underground utilities including power, sewer, gas, electric, and water. With development scheduled to finish in September, it is anticipated the borrower will begin to payoff this development loan as construction loans are obtained for each of the fourplex’s. Loan Amount: $5,200,000 Yield: 10.5% (Principal Balance ≥ $100,000); 10.0% (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: Nine months with an optional nine-month extension at maturity.
First Trust Deed collateralized by 17 acres of residentially zoned land near the corner of Vegas Dr and Rancho Dr near North Las Vegas, NV (roughly five miles northwest of downtown Las Vegas). The land is currently zoned R-2 which will allow for the development of 34 homes on the site, but the borrower is working with the city to approve a 248-lot community. Since acquiring the site about a year ago, the borrower has continued to work with the city to approve a proposed 248 lot community as depicted on the next page. With home sales starting in mid-2020 averaging $210,000 and 1,500 square feet in size, it is anticipated the borrower will be sold out of the community by the end of 2023. Loan Amount: $2,106,000 Term: 6 months with one optional 6-month extension period at maturity. Yield: 10.50% (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.
First Trust Deed collateralized by an approximately 367,000 square foot mall in Nampa, ID (about 22 miles west of Boise, ID). Current tenants in this mall include national brands such as Big 5 Sporting Goods, Ross Dress for Less, and Jo-Ann Fabric as well as 30+ local tenants. The property is currently operating at a 36% vacancy however retail vacancy for this market is about 10%. Do to the declining consumer appetite for traditional mall space, it is the borrower’s intent to demolish a portion of the mall and turn it into a lifestyle center. To do this, the borrower will demolish approximately 30% of the in-line shop space and remove most of the interior corridors. In addition, the borrower will renegotiate leases with two of the big tenants to move their space as well as increase the duration of their lease. On top of that, the borrower will bring in two big box tenants to absorb a large amount of the vacant space. Given this property has more vacancy than the surrounding properties, it is the borrower’s intent to lease up the remaining space before he puts the property on the market for sale. Loan Amount: $11,000,000 Yield: 10.5%