Successful business owner and real estate investor sought a 1st Trust Deed to refinance an existing, current and in good standing $1.1M 1st TD and 100% balance of the funds will be placed into Funds Control to complete permanent renovation property improvements on this commercial-industrial building in Long Beach, Los Angeles, CA.
Borrower’s total personal “skin in the game” to date on subject property is $1,023,000. This amount includes $600K down payment on purchase of property, $173K on property renovation improvements to date and $250K on architects, permits and licensing.
A recent Construction Feasibility Analysis by an independent 3rd party accounting firm, verified this loan’s Funds Control amount is sufficient to complete scope of work to complete its recent after completion appraised value of $2.7M.
The subject property is a free-standing commercial-industrial building with 4,850 SF rentable space which is of good quality class “C” concrete block sitting on a 6,580 SF (.15 acres) lot centrally located in Long Beach, CA. The subject building will offer a secured entrance, a lobby, a kitchen, 2 restrooms, a maintenance room, a packaging room, 2 refinement rooms, 2 storage rooms, 2 offices and will also offer a fire sprinkler system, and State of the Art security system. The subject property is very well centrally located near the 405, 605, 710, 110 and 1 Pacific Coast Hwy. Subject property is surround by similar commercial-industrial buildings.
The subject building is configured to house a single tenant and will be 100% owner occupied as of the completion of the renovation. The property will be used as a licensed and permitted cannabis manufacturing & distribution facility. All required state and local cannabis licenses and permits in place.
Per appraisal, subject property may also be used as an office building, retail building, mini-warehouses, hotel, residential or commercial.
What we like about this Trust Deed opportunity:
- Experienced business owner / operator
- 100% Funds Control balance after current, good standing 1st TD pay-off
- Borrower $1,023,000 “skin in game”
- 12.00% Investor Yield
- 61.73% ARV LTV / 63.89% ARV LTV
- 6 months guaranteed interest
- 3 months prepaid interest
- Legally permitted/licensed cannabis business – multi tenant
- Construction Feasibility Report Approved
- Subject property zoned for multi-uses
