The properties consist of 7.5 acres of land which was purchased by the borrower in 2016 from the Bureau of Land Management. Since that time, the borrow has gone through many different rounds of negotiations with the county over land use to get the property rezoned. The property has a rural subdivision approval which allows for the development of 13 homes. It is anticipated that the property will receive the final map approval within the next few months at which point the borrower will sell the property to a local homebuilder. The borrower will also paydown $500,000 of the loan amount after the property with APN ending in -009 is refinanced. Master Loan Amount: $2,450,000 Tranche Loan Amount: $1,950,000 for tranche 5072 and $500,000 for tranche 5073 Yield: 10.0% 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 position loan collateralized by a retail shopping center totaling 76,000 square feet in Portland, Oregon (about 8 miles east of downtown Portland, OR). The property is currently 94% occupied to national tenants like Baskin Robbins, Metro PCS, Jackson Hewitt, Dollar Tree and Ace Hardware. With current rents over 650,000 annually, the property is currently in a good financial position, but the borrower looks to improve the property’s outlook. To do so, the borrower has plans to fill the remaining vacancy as well as some tenant rollover to another large, national tenant specializing in auto parts. Additionally, the borrower is in current talks to do a ground lease with a national coffee chain in the unused part of the parking lot. Loan Amount: $7,900,000 Yield: 11% total interest. 6% interest is paid monthly in arrears with payments due on the 1st of each month with a 10-day grace period. An additional 5% interest is paid upon the final loan payoff. Term: Nine months with an optional nine-month extension at maturity.
The collateral for this loan consists of five superpads that will allow for the ultimate construction of twenty townhomes per pad (100 units in total) which are located in Littleton, CO (approximately 20 miles southwest of Denver, CO). These 100 townhome units are part of a larger townhome project that already has 140 units constructed. Because the project has a stigma as a broken development along with the previously onerous construction defect laws, most developers have steered clear of this project. Lokal Homes has purchased a few of these types of projects throughout the Denver metro area with great success. These townhomes will have an average sales price over $290,000 per unit and over 1,100 square feet in size. Master Loan Amount: $5,900,000 Tranche Loan Amount: $1,180,000 Loan Type: This Master Loan will be sold in tranches, giving investors the opportunity to invest in one or more lots in the community. A breakdown of the lots is shown on the next page. Yield: 10.00% 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 two optional 9-month extension period at maturity.
First Trust Deed collateralized by nearly 6.2 acres of residentially zoned land near the corner of Cadence Crest Ave and Sunset Rd in Henderson, NV (roughly 15 miles southeast of downtown Las Vegas). The land is currently zoned PC (Planned Community) which will only allow a few homes to be built on the site. The borrower is currently working with the city to approve a 74-lot community. This tentative map approval for the 74 lot community will happen before the funding of this loan. This is the second community in this area the borrower has done with the exact same floor plans. In about nine months, the borrower will begin the development work on the land which is expected to cost nearly $4,500,000. The first home will not be made available for approximately one year. With plans ranging from 1121 -1711 square feet and price points of under $250,000, these townhomes will help fill the demand for the entry level buyer. Master Loan Amount: $1,800,000 Tranche Loan Amount: Between $267,600 and $802,700 Yield: 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