The collateral for this loan is 11 acres of land in Idaho Falls, ID. Since acquiring the land about two years ago, the borrower worked with the city to get the plat map approved for the construction of a 160-unit build-to-rent townhome community. Although the collateral for the project is all the land that will ultimately become the 160-unit community, this loan is for the vertical construction of 84 of the units and the land associated with phase two which will eventually be 76 more units. In this fast-growing market, rental rates have outpaced the supply of available product which this property will help to satisfy. Lease up should happen in short order which will allow for the refinance to happen on a rolling basis. Each of the units will average 1,425 square feet and are anticipated to rent for $1,825 per month. It should also have one of the nicest amenity packages in the entire market.
Loan Amount: $15,800,000
Yield: 10% 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 period. The final maturity date is 12/7/24