Very successful business owner and real estate investor is seeking a 1st Trust Deed to purchase this owner-occupied, industrial building in Fullerton, Orange County, CA. Mortgage Vintage facilitated the Seller’s purchase loan on this property 3 years ago. This loan will be replacing Mortgage Vintage’s existing and in good standing 1st Trust Deed with this new 1st Trust Deed purchase loan with new, well-qualified Buyer-Borrower.
Borrower owns a multifaceted company distributing Automotive accessories to the custom aftermarket industry which grossed $1.19M in 2022, net income of $458K (P&L in investor dropbox). Investor Equity Protection on this new loan is $2,190,000. Exit strategy: commercial refinance.
The subject property is a single story, concrete industrial building with 12,000 SF of rentable space sitting on a 23,400 SF lot with 30 parking spaces. The subject property is configured to house three users. Each unit offers an entrance from East Ash Ave., a rear entrance, 2 restrooms, a warehouse with metal roll-up doors, a clear height of 16 feet, and are each built out with approx. 20% of interior office space. The subject property is well located on a commercial-industrial street and is designed with adequate considerations for utility and functional factors related to tenancy. The borrower intends to use the subject property to occupy with his existing business and to also use the remaining units as an investment.
The subject property currently has a tenant with 18 months remaining on the existing lease at $4,000 monthly, upon expiration the agreement extends for an additional 5 years at the going rental rate for the area of $6,500 monthly. The second unit is currently undergoing minor improvements for a specific tenant that has agreed to a lease at $6,500.00 monthly. Borrower will be relocating his business into the remaining unit immediately upon the close of escrow. The current building owner is a family member, she is investing some of her equity into borrower’s business. As a result, the agreed-upon purchase price is less than the appraised value.
What we like about this Trust Deed opportunity:
- Experienced, successful business owner and real estate investor
- $2,190,000 in Gross Investor Equity Protection
- 10.00% Annualized Return
- 52.33% LTV on Purchase Price
- 41.67% LTV on Newly Appraised Value
- 6 months Guaranteed Interest
- Phase 1 Environmental Completed with No Further Action Required