Successful Mortgage Vintage Borrower, business owner, and real estate investor (Fairbrook Communities, LLC) is seeking a Blanket 1st Trust Deed to purchase two well located lots of undeveloped land in Perris and Menifee in Riverside County. The multi-family development entitlements for both properties should be coming within the next 60 days. The borrower tied up the properties in August, 2021 and have worked with the City to progress the Entitlement and Development process. Both properties are in prime locations within the Inland Empire (one of the nations fastest growing regions). Borrower has invested over $320k+so far in their Entitlement and Development work and will invest their own capital to reach final Entitlement approval. Borrower has decided to sell these parcels vs. develop as they have made a business plan decision to focus their development efforts on larger multi-family properties.
Crescent Cove – Located in Perris, the Subject Property lot size 209,523 sf (or 4.81 acres). The improved multifamily square footage will be 107,220 and will be improved into a Class A/B 108-unit multifamily development. The property will have a total of 4 buildings offering 2 bd/2ba units – approximately 1,080 sf with rents at $2,492/mo. and 1bd/1ba units – approximately 780 sf in size with rents at $2,136/mo. Parking will consist of 136 open spaces and 110 carports. The property is two miles from the 1-215 fwy and near shopping and medical facilities.
Cypress Sands – Located in Menifee, the Subject Property lot size is 403,801 sf (or 9.27 acres). The improved multifamily square footage will be 135,120 and will be improved into a Class A/B 136-unit multifamily development. The property will have a total of 9 buildings offering 2 bd/2ba units – approximately 1,050 sf with rents at $2,645 and 1bd/1ba units – approximately 755 sf in size with rents at $2,400/mo. Parking will consist of 174 open spaces and 142 carports. The property is one mile from the 1-215 fwy and near shopping and medical facilities. Amenities for both properties will include a community pool and clubhouse.
What we like about this 1st Trust Deed + Profit Split opportunity:
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- Riverside County location
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- Combined Debt and Equity Annual Yield of Est. 30%
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- 18.00% Annualized Fixed Return on the 1st Trust Deed
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- 10% of net profit upon sale estimated to be in the $460k to $500k range
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- 6 months Guaranteed Interest and 6 mos. prepaid int.
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- 50.00% LTV on $7.6M As-ls Value and 45.13% Net LTV
- 20.00% LTV on $19M Value after Entitlements
