The collateral for this loan is nearly 25 acres of land that will consist of 312 townhome lots located in Nampa, ID (approximately 19 miles west of Boise, ID). Most of the 312 units are presold as investment properties to the borrower’s clients. The final plat map is in the process of being approved by the city and is a condition to closing that must be satisfied to the buyers liking before closing will occur. It is anticipated the borrower will refinance this loan into a development loan in about 120 days after closing at which point, they would have already completed over $1,000,000 of site work. This loan could have paydowns once the development work is completed but before the construction work begins.
Loan Amount: $3,400,000
Term: Nine months with no optional extension at maturity.
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.