The collateral for this first position trust deed is a 15-acre site that is approved for medium density residential within a qualified opportunity zone (QOZ). Since putting the property under contract nearly a year ago, the borrower worked with the city to get additional zoning changes permitted and to get the property one step closer to being “shovel ready”. The property will eventually consist of 250 apartment style units in the form of townhomes as well as traditional stacked apartments. Given the location is in a QOZ, securing equity partners once the property is shovel ready should be easier than the 2,000 plus units the borrower has previously secured equity for.
Loan Amount: $7,000,000
Yield: 10% interest Schedule: 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 1/5/25.