The collateral for this loan is an approximately 9.33-acre site that will be entitled to allow for the construction of a 237-unit, four-story apartment complex. With a unit mix of 36 studio’s, 107 one-bedrooms, and 94 two-bedroom units, the project is geared to smaller units focused toward the more cost conscience renters. With final plat approved in July of this year, the borrower is in the process of getting final general contractor pricing for the build job which will put them in a position to get construction financing. Loan Amount: $3,408,000 Yield: 10% Interest is paid monthly in arrears with payments due on the 1st of each month with a 10-day grace period. *For investments equal to or greater than $100,000 investors will earn 10.5%. Term: Nine months with an optional nine-month extension at maturity. Final maturity date is 3/26/23.
The collateral for this loan is a 54,641 square foot, vacant office building siting on a 2.1-acre site. Since acquiring the site earlier this year, the borrower has remedied the deferred maintenance to better position the property for an end user. Although the four-story office building was previously a single tenant office building, the floor plan is conducive to transition into a multi-tenant property. Originally the borrower intended to lease the property before selling it however it will now be sold as-is. The property will be auctioned in November with an anticipated close in December. The auction site expects the property to sell for $1,200,000. Loan Amount: $850,000 Yield: 10% interest is paid monthly in arrears with payments due on the 1st of each month with a 10-day grace period. *For investments equal to or greater than $100,000 investors will earn 10.5%. Term: Nine months with an optional nine-month extension at maturity. Final maturity date is 3/20/23.
The collateral for this loan is an approximately 5.78-acre site that is currently divided into five separate parcels with nearly 80,000 square feet of rentable space. These five separate parcels were built in 1963-1965 and consists of one large inline retail shopping center, three retail pads, and two apartment buildings. Although the project is nearly 80% leased, the lack of capital improvements to the site in many years has made it very hard to rent much of the remaining space. Our borrower plans to demolish the two apartment buildings and two retail pads to make way for two new drive through retail pads. With the two new drive throughs and the deferred maintenance resolved, the unleased space should quickly be absorbed with national tenants. Current tenants include Grocery Outlet, Kitsap Credit Union, New American Funding along with many local tenants. Loan Amount: $14,000,000 Yield: 10% interest is paid monthly in arrears with payments due on the 1st of each month with a 10-day grace period. *For investments equal to or greater than $100,000 investors will earn 10.5%. Term: Nine months with an optional nine month extension at maturity. Final maturity date is 3/28/23.
First Trust Deed collateralized by an approximately 136,000 square foot former Sears building which is part of the larger Jackson Crossing Shopping Mall in Jackson, MI (about 78 miles east of Detroit, MI). Current tenants in this mall include national brands such as Kohl’s, T.J. Maxx, Bed Bath & Beyond, Best Buy, and Target (these tenants occupy property inside the mall but not the collateral of this loan). Since acquiring the site in December of 2019, the borrower has demised the interior of the Sears building and updated the property to new building codes. Going forward, the borrower needs additional capital for the specific tenant improvements to the six new suites (the floor plan is on the next page). Tenants such as Hobby Lobby, Burlington, and Planet Fitness have all signed leases or letters of intent. These three tenants would occupy over 80% of the space and the remaining three smaller suites would be rented to local tenants once they are procured. With average lease rates of $7.00 per square foot, the property will generate enough cash flow to cover interest payments with just the three tenants already identified. Loan Amount: $10,000,000 Yield: 10.5% (Principal Balance ≥ $100,000); 10.0% (Principal