The collateral for this loan is 22.51 acres of land near the Northeast corner of 59th Ave and Elliot Rd in Phoenix, AZ (approximately 15 miles southwest of downtown Phoenix, AZ). Since the borrower went under contract to acquire the site over a year ago, they have successfully worked with the city to approve a 249-unit apartment complex. Of the 249 units, 38 are studio apartments (15%), 62 are one bedroom (25%), and 149 (60%) are two-bedroom units. The borrower anticipates receiving their grading permit and construction loan in six months, at which point the loan will be paid off. The construction loan for this project will go towards the total project cost of $46,000,000.
Loan Amount: $3,800,000
Yield: 10.5% (Principal Balance ≥ $100,000); 10.0% (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: 9 months with one optional nine-month extension period at maturity.