Very successful borrower who is the Owner and Founder of “Vista Paint” https://www.vistapaint.com/ and experienced real estate investor of a large commercial and residential real estate portfolio throughout Southern California sought a business purpose cash out loan on this “Free and Clear” non-owner occupied commercial investment building just 2 blocks from world-famous El Paseo shopping district Palm Desert, right on high traffic Highway 111. Borrower is pulling cash out from several of his “free and clear” commercial properties to purchase a new real estate development in the area. Borrower using private money vs. traditional for speed.
Borrower’s net worth is assessed at $591M which includes his “Vista Paint” company valued at $50M and $392M in real estate assets plus stock/retirement assets. In addition to the investor protective equity on this subject property, borrower is personally guaranteeing this loan. Borrower’s exit options: pay off loan through business proceeds, personal assets or refinance. Borrower has substantial liquidity to service the loan debt. The borrower owns many commercial properties in this same village complex and surrounding areas as subject property.
The subject property is very well located in downtown Palm Desert, next to El Paseo shopping district, at 73446 Highway 111. The subject includes 1 commercial building, site totals 6,098 SF or .14 acres with total rentable building area of 5,280 SF. The subject is configured to house a single user and offers a large retail area, 2 restrooms, front and rear entrances, 1 office area, and a storage room. On-site parking consists of 18 asphalt paved and marked parking spaces with additional parking available on Highway 111. Annual Rent survey is $97,880 with $18.50 PSF Triple Net. The space is pending occupancy within 60 days. The borrower is currently negotiating TI allowance for build-out with three prospective tenants. Per borrower, prospects include a coffee roaster/café, a meat market and known ice cream store. Cap Rate 6.00%. Subject property is very well located in the revitalization of downtown Palm Desert district, right on Highway 111, near El Paseo shopping district, restaurants, hotels, country clubs, neighborhoods, west of the 10 FWY.
What we like about this Trust Deed opportunity:
- “Vista Paint” Owner/Founder with large net worth – liquidity to pay
- Borrower has substantial cash reserves and a large Real Estate Portfolio with Equity
- Great location blocks from El Paseo Shopping district, right on Highway 111
- 55.00% LTV
- 53.35% Net LTV
- 10.50% Investor Yield
- Net Investor Equity: $625,092 on recent appraisal
- 6 months Guaranteed Interest
- 3 months Prepaid Interest
