First Trust Deed collateralized by an approximately 88,940 square foot retail building situated on eight acres of land in the heart of Klamath Falls, OR (about 301 miles north of Sacramento, CA and 175 miles southeast of Eugene, OR). The property was acquired by the borrower in July 2014 when the property was fully leased to K-Mart as the lease was expiring. Since that time, K-Mart has moved out and the borrower has spent more than $1,000,000 on improvements to the property to get it ready for a new credit tenant. The new tenant for the property is Coastal Farm and Ranch which is a large regional tenant that has recently signed a lease paying over $400,000 annually for an initial 15 year term.
Loan Amount: $2,750,000
Yield: 11.00% (Principal Balance ≥ $100,000); 10.75% (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: 14 months with an optional four month extension at maturity.