The properties consist of 7.5 acres of land which was purchased by the borrower in 2016 from the Bureau of Land Management. Since that time, the borrow has gone through many different rounds of negotiations with the county over land use to get the property rezoned. The property has a rural subdivision approval which allows for the development of 13 homes. It is anticipated that the property will receive the final map approval within the next few months at which point the borrower will sell the property to a local homebuilder. The borrower will also paydown $500,000 of the loan amount after the property with APN ending in -009 is refinanced.
Master Loan Amount: $2,450,000
Tranche Loan Amount: $1,950,000 for tranche 5072 and $500,000 for tranche 5073
Yield: 10.0% 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.