The collateral for this loan consists of 74 platted townhome lots located in Colorado Springs, CO (approximately 61 miles south of Denver, CO). These 74 lots are part of a larger 221 lot community know as Victory Ridge. Townhomes will average 1,500 square feet in size with an anticipated sales price of $306,000. Lokal homes is selling the last phase of a competing community of townhomes that were 200 square feet larger with a sales price of $40,000 more than Victory Ridge. After hearing what buyers want in the area, Victory Ridge is slightly smaller and priced well below Lokal Homes’ competing community, as well as, all other competition in the area from other builders. Lokal Homes has the option to purchase the remaining lots within Victory Ridge and are slated to do so in the coming months. Directly to the north of the property (the top of the map on the next page) is a newly opened Icon Cinema in a growing “Interquest corridor”.
Loan Amount: $2,460,000
Yield: 11% 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 two optional nine-month extensions at maturity.