Recently Funded! Hard Money Loan in Palm Springs: $2,860,000 @13.75%, 1st TD, Refinance, Industrial, 65.00% CLTV

Loan Purpose

Repeat MVI borrower refinanced existing debt secured by an industrial property located in Palm Springs, California. Loan proceeds will be used to retire the current 1^ST TD with Mortgage Vintage that is maturing and a 2^nd TD to consolidate the capital structure into a new 1^ST TD. The loan is business-purpose and secured by a non-owner-occupied industrial asset. The property is 100% occupied by a single tenant with a $65,000 month triple net lease through 2032 = $780,000 annual gross income to service this loan.

Property Description

The subject property located on McLane Street, Palm Springs, California is a 12,256 square foot Class B industrial cannabis facility, single story, situated on a 0.46-acre site. Property consists of 13 total rooms, 3 bathrooms and 71 on-site parking spaces, all asphalt paved and striped. The property is 100% occupied by a single cannabis tenant and fully built out for cultivation and refinement, including multiple grow rooms, refinement and drying rooms, offices, secured access, and gated parking. The property earns $65,000 a month on a NNN lease through 2032. Using a market-supported 7.25% capitalization rate, the income approach indicates a value of $4.8 million, while the final reconciled as-is market value is concluded at $4.4 million for cannabis use, providing investors with a stabilized, income-producing asset in a supply-constrained industrial cannabis market. The subject is well located just off the 10 FWY and Indian Canyon Drive exit. The site is zoned IP (Industrial Park), which allows for a range of industrial uses under the City of Palm Springs zoning code.

What we like about this Trust Deed opportunity:

• • Good condition industrial building just off the 10 FWY; $65,000 NNN lease, income generating to service this loan
  • 13.75% Investor Rate on a 1st TD – Protective Net Investor Equity $1,540,000
  • Repeat borrower
  • 6 months Guaranteed Interest
  • Environmental Report – Low – No Further Action Required

$2,860,000 1st TD @ 13.50%, 65.00% LTV, Refi, Commcl, $89,375 Min., Palm Springs, CA