First Trust Deed collateralized by a parcel of a commercially zoned property approximately 170 miles east of San Diego, CA and 180 miles west of Phoenix, AZ. Since putting the property under contract about six months ago, the borrower worked with the local municipalities to get the property entitled to allow the construction of a geriatric behavioral health facility. This will be the borrowers sixth such facility since 2011 with plans on doing two more each year. Once completed, the property will consist of 17,800 square feet facility with 30 beds. Additionally, Ignite was able to review the sale agreement which shows a future sales price of $15,125,000. The buyer is the same group that purchased the 16,800 square foot, 24-bed facility from the borrower in the middle of 2022. The buyer has already gone non-refundable on nearly $500,000 of earnest money.
Master Loan Amount: $10,900,000
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 two optional nine-month extension at maturity. Final maturity date is 3/26/25.