The property consists of 3.03 acres of land located off I-15 in North Las Vegas, NV (approximately 10miles northeast of Las Vegas, NV). There are two big drivers of value for this site. First, although the county records indicate a size of 3.03 acres, the updated survey shows 3.4 acres of land. This means the borrower is purchasing 12% more land, for no additional price per acre. Secondly, this piece is the last piece of an assemblage the borrower is doing in this area. The borrower already owns over 10 acres of adjoining land. This enables the borrower to realize additional value by economies of scale when selling to end buyers. The larger size also allows for many different users because of the configuration of the site. It is anticipated the borrower will complete the entitlement process in the next nine months and sell the property at that time. Additionally, the borrower is currently working with a buyer who is wanting to purchase the property for $1,350,000 once the entitlements have been completed. Although negotiations are early in the process, it is a good indication of the current value.
Loan Amount: $900,000
Yield: 11.5% (Principal Balance ≥ $100,000); 11.0% (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: Nine months with an optional nine-month extension at maturity.