The collateral for this loan consists of a former K-Mart in Hobbs, NM which is approximately 300 miles southeast of New Mexico’s largest city, Albuquerque. This 88,849 square foot facility was purchased by the borrower in 2018 after the previous tenant moved out leaving the property completely vacant. Since that time the borrower has leased 87% of the project to national brands which will open for business once the tenant improvement work is completed. This loan will be used to refinance the acquisition of the property and future tranches will be used to complete the six million of work on the property. Most of the money will go into tenant specific work but some will be utilized for repair to the structure, landscaping, lighting, and to repave the parking lot.
Master Loan Amount: $15,880,000
Yield: 10% interest is paid monthly in arrears with payments due on the 1st of each month with a 10-day grace period. *For investments equal to or greater than $100,000 investors will earn 10.5%.
Term: Nine months with an optional nine-month extension at maturity. Final maturity date is 5/27/25.