The collateral for this loan consists of seven superpads that will allow for the ultimate construction of eight condos per pad (56 condo units in total) which are located in Colorado Springs, CO (approximately 61 miles south of Denver, CO). These 56 condo units are part of a larger condo project that already has 40 units constructed. Because the project has a stigma as a broken development along with the previously onerous construction defect laws, most developers have steered clear of this project. Lokal Homes has purchased a few of these types of projects throughout the Denver metro area with great success.
Loan Type: This Master Loan will be sold in tranches, giving investors the opportunity to invest in one or more buildings in the community. A breakdown of the lots is shown on the next page.
Yield: 10.00% interest is paid monthly in arrears with payments due on the 1st of each month with a 10-day grace period.
Term: 9 months with an optional 9-month extension period at maturity.