First Trust Deed collateralized by an approximately 81,970 square foot retail building situated on 4.3 acres of land in the heart of Merced, CA (about 117 miles east of San Jose, CA and 59 miles northwest of Fresno, CA). The property was acquired by the borrower in May of 2016 when the property was vacant with the exception of one long established tenant, Rite-Aid. Since the building construction in 1986, Rite-Aid has been the anchor tenant and had been part of a fully leased center until 2014 when the three of the four tenants vacated the premises. Since acquiring the property, the borrower did a complete renovation and upgrade to the building in preparation to attract new tenants. Since the completion of the renovations, one lease has been signed with another that is eminent with strong local and national tenants.
Loan Amount: $3,700,000
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: 11 months with one optional 11 month extension period at maturity.