Loan Description:
Business Owner and property owner/user is seeking a $1,375,000 business purpose 1st Trust Deed loan on this mixed-use Commercial/Warehouse/Residential investment property in Signal Hill, Long Beach, CA. The borrowers will be using the loan proceeds to pay off an existing $849k 1st and $50k 2nd TD, property taxes and prepaid interest of 6 mos. Borrower leverages their Vietnam connections to provide quality cabinetry at low prices direct to consumers and to large retailers in the US.
The borrower has fallen behind on her current payments with the tariff turmoil with China and has developed new lower-cost suppliers in Vietnam. In addition to the current mixed use, the 13,323 sf lot has immense development potential. The borrower’s 1st mortgage that will be paid off is at 11% and is with Harvest Small Business Finance with payments of $9,998.75/mo.
Property Description
The subject property is a freestanding mixed-use commercial and residential building located in Signal Hill, Long Beach, Los Angeles County. The parcel consists of 13,323 sq. ft. (0.31 acres), is rectangular, level at street grade, and situated on a corner lot with frontage along both East Willow Street and Myrtle Avenue. The site lies in Flood Zone X and presents no known adverse conditions, encroachments, environmental issues, or soil concerns based on inspection.
Zoned CG – Commercial General, the property qualifies for flexible use, including office, retail, and mixed-use applications. The improvements were originally built in 1962 and renovated in 2017, and are considered Good Class “D” quality and in good condition, with no noted deferred maintenance.
The building totals 5,775 sq. ft. of rentable area, consisting of approximately 4,100 sq. ft. of single-story commercial space featuring two large retail showrooms, four offices, two restrooms, a storage warehouse, front and rear entrances, recessed lighting, and security/fire alarm systems. At the rear is a 1,675 sq. ft., two-story residential unit with 2 bedrooms and 2 bathrooms. The property includes eight on-site gated parking spaces, plus ample street parking on both frontages.
As of the appraisal date, the property was 100% occupied, well-maintained, and exhibits functional utility consistent with its mixed-use configuration.
What we like about this Trust Deed opportunity:
- 11.25% yield at a low 55.00% LTV and 51.70% net LTV
- 1st Trust Deed
- Well-located corner location in Signal Hill, Long Beach
- Established Owner/User Borrower
- 6 months Prepaid Interest
- 6 months Guaranteed Interest
