Real Estate Investor and successful business owner sought a business purpose cash-out 1st TD on this ‘free and clear,’ non-owner-occupied investment mixed-use property in Los Angeles, CA. The subject property is comprised of two side-by-side parcels and is leased out to a cosmetic automotive car detail and improvement shop for a total of $4,500/mo. A clean Environmental Pre-Screen for each parcel is provided in our due diligence file. Proceeds will be used to make improvements to property as well as invest into the borrower’s business. The exit strategy is a commercial refinance within the next 12 months or payoff in its entirety from business proceeds.
The Subject is located at 1446 & 1448 West 99th Street within the City of Los Angeles, CA. The Subject site totals 0.15 Acres, or 6,614 square feet, and is located on a commercial street that offers 2 asphalt-paved lanes. The site is basically rectangular in shape and fully level at street grade. The Subject is zoned C2, Commercial. According to a zoning official with the City of Los Angeles Planning Department, the district is considered flexible and allows for uses such as office, retail, mixed-use as well as properties under the permitted use section of the R2 zone. Based on the site inspection and the existing development on the site and in the surrounding area, there does not appear to be any adverse site conditions (easements, encroachments, soils, hazardous, etc.) on the site or in the immediate vicinity that would have any adverse impact on the utility or development potential of the property.
The subject property includes 2 freestanding buildings on two individual parcels which are of average quality class “D” wood frame and stucco construction and was originally constructed in 1926. The improvements have since been renovated and are located along West 99th Street with good access and visibility. The appraisers noted the improvements were in average condition and do offer economic vitality. The subject is configured to house a single user and was 100% occupied as of the date of value. The 1446 West 99th Street building consists of a 1,100-square-foot building with an office area, 2 restrooms, and a kitchen. This building is Class “D” wood frame construction and was in average condition as of the date of value. The 1448 West 99th Street building consists of a small 160-square-foot building which is used for storage. This building is Class “D” wood frame construction and was in average condition as of the date of value. On-site parking consists of 10 spaces with additional parking available on West 99th Street. The Property is well-located and is designed with adequate considerations for utility and functional factors related to tenancy.
What we like about this Trust Deed opportunity:
- Real Estate Investor and Business Owner
- Debt Service is covered by tenant
- Los Angeles Commercial Property
- 48.44% LTV, 46.62% Net LTV
- 13.00% Investor Yield
- Protective Gross Investor Equity: $330,000
- Fully Leased
- 6 months Guar. Interest and 3 mos. prepaid interest
$310,000 1st TD @ 12.50%, LTV, NOO, Commcl, CO, 18 mo. term, $38,750 Min Inv., Los Angeles, CA
