The collateral for this loan consists of an approximately 1.67-acre parcel of land which is currently zoned B-2 giving the borrower options for many business uses such as manufacturing, residential and multifamily. It is the intent of the borrower to get final approval for a six building, 24-unit, residential development. Each of the six buildings would be fourplexes to allow for a multitude of takeout financing options. Each of the units will be three bed, two bath units with rental rates averaging $2,200 per unit. With an extremely strong rental demand in the area, it is anticipated all the units would be absorbed by the market within one month of completion. The fourplex configuration gives the borrower options of selling individual buildings or refinancing the whole project as an investment.
Master Loan Amount: $4,200,000
Yield: 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 nine-month extension at maturity. Final maturity date is 4/16/24.
