The collateral for this loan is approximately 18 acres of land that will consist of 236 townhome lots located in Meridian, ID (approximately 14 miles west of Boise, ID). Most of the 236 units are presold as investment properties to the borrower’s clients. Since acquiring the property in June of 2019, the borrower received final approval from the city to begin development work on the community. Additionally, 90% of the underground utilities (water, gas, electric, sewer) have been completed and should be finished by the time this loan funds. Streets, curbs, and gutters are expected to be completed by the beginning of November. It is anticipated the borrower will begin vertical construction of the townhomes before the end of the year which would start the partial pay downs of the loan.
Loan Amount: $4,800,000
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 six-month extension at maturity.