The collateral for this loan is 9.39 acres of land that will consist of 128 townhome lots located in Eagle Mountain, UT (approximately 35 miles south of Salt Lake City, UT). All 128 units are presold as investment properties to the borrower’s clients. The 128 units have been approved by the city which will be accepting a cash performance bond in the amount of about $2,400,000 in early 2019. Money will be held in escrow until the city accepts the cash bond and work begins. Once work begins, it is anticipated that the development will be completed by the end of August 2019. This loan will have pay-downs once the development work is completed but before the construction work begins.
Loan Amount: $4,600,000
Yield: 10.25% (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.
Term: Nine months with an optional nine-month extension at maturity.