First Trust Deed collateralized by roughly 80 acres of farmland which will be developed into 50 estate sized lots. Since working with the land seller about a year ago, our borrower has been working with the city to get approval for the development of a 50-lot residential development. As one of the last projects located along the Provo River, the projects has already drawn a tremendous amount of interest. With only the aid of a website and no real marketing efforts, the project is already more than half reserved. These reservations include all the high-priced lots next to the river. Although the borrower has taken many reservations, no earnest money deposits have been taken in accordance with Utah law. Once the development agreement is adopted by the city, the borrower will legally be allowed to accept earnest money deposits. The city will adopt the development agreement once the development funds are paid. In total, about $6,000,000 of the loan proceeds will be used for the development bond which is the final step to move toward moving dirt and taking nonrefundable deposits from the lot buyers. Loan Amount: $12,500,000 Yield: 11.0% Interest is paid monthly in arrears with payments due on
First Trust Deed collateralized by an approximately 110,000 square foot Sears building in Silverdale, WA (about 37 miles west of Seattle, WA). The site is part of a larger, nearly 1,000,000 square foot mall known as the Kitsap Mall. Current tenants of the Kitsap Mall include Dick’s Sporting Goods, Buffalo Wild Wings, Zumiez, American Eagle, Verizon, Macy’s, Spencer Gift, H&M, JCPenney’s, and Kohl’s among many others. Prior to this transaction closing, Sears will sign a short term (less than six month) lease to wind down operations. Our borrower, Rhino Holdings Silverdale, LLC, an affiliate of GGD Oakdale, is currently working with three tenants which would occupy the building in its entirety. Hobby Lobby and Harbor Freight are two tenants the borrower is negotiating with to sign new, long-term leases. Burlington Coat Factory, the third tenant for the space has yet to sign their letter of intent to lease the space. In order to get the building ready for the tenants, the borrower has budgeted nearly $5,000,000 of capital improvements. In addition to the building, the borrower is acquiring the 10+ acres of land surrounding the building that is currently a parking lot. It is the intent of the borrower to
First Trust Deed collateralized by a 1,200 square foot home in the north part of Seattle, WA (approximately 6 miles north of downtown Seattle, WA). The borrower acquired the home about 18 months ago due to a death in the family and is now ready to begin the rehab work in order to get the property ready to be rented. The home, which has four bedrooms and one bath is in one of the most desirable areas of Seattle, Maple Leaf. The property will be leased to a long-term tenant once the five-month rehab schedule is completed. Once the property is fully rehabbed and leased, the borrower will seek long-term financing like he has on his other rental units. Loan Amount: $450,000 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.