Experienced real estate investor and cannabis business owner sought a 1st TD cash-out loan on this “Free & Clear” fully-entitled, CUP permitted, city approved commercial 18 lot subdivide on Koala Road, in Adelanto, San Bernardino County, CA. The borrower is also cross-collateralizing “Free & Clear” land that is pending final fully-entitled, CUP permitted, city approved commercial 12 lot subdivide on Jonathan Street, in Adelanto, San Bernardino County, CA. The purpose of our loan is to pay for grading and initial development of the first 63,000 SF metal framed building. Funds Control will hold $800k; $300k of which will to be used to complete city permitted grading to the 18 lot Koala Rd. property; the other $500k in funds control will be used as a deposit for one metal commercial building frame for Koala Rd. The balance of the loan proceeds will be used for additional development and operating costs. Exit strategy from our 12 mo. loan will be a construction loan for the Metal Building or alternatively, the borrower could sell 1 or more of the 18 sub-divided lots on Koala Rd. once grading is complete.
$6M “skin in the game” has been invested in this cannabis cultivation development project; since March 2020 to date investment includes purchase of land, Pontius Architect, and J.E. Miller & Assoc. Civil Engineer well regarded firms costs/fees for drawings and plans; costs/fees to the City of Adelanto for CUP/LDP, taxes, permits, licenses to build and cultivate. Borrower is “shovel ready” for grading.
Borrower has approved plans on Koala Road to build out nine (9) 63,000 SF two story commercial buildings for cannabis cultivation, warehouse and non-retail delivery use. Borrower will keep one for their own cannabis cultivation and build the other eight (8) 63,0000 SF two story cannabis cultivation commercial buildings on Koala property to sell or lease to cannabis related tenants for lucrative rental income projected at min. $900k per annum per building. Market value projection of each commercial building once complete is $10,080,00 ($160 /SF).
The subject property on Koala Road is currently comprised of a single unimproved parcel, subdivided into 18 (1acre) buildable, usable lots, situated upon 20.0 acres (871,200 SF) The approved 18 lot subdivision has all CUP’s for Cannabis Cultivation in place. The cross-collateral property on Jonathan Street is currently comprised of four contiguous unimproved parcels situated upon 15.4 acres (670,820 SF). CUP application has been filled out and tentative parcel map has been issued, awaiting official CUP and final parcel map for 12 lot subdivision. Borrower anticipates this CUP and Parcel Map will be available in a 30-60 days. Borrower has no immediate plans to develop Jonathan Street until after Koala Rd. is fully developed.
Both subject properties are very well located next to the Southern California Logistics Airport also known as “Victorville Airport” a large commercial use airport designed to provide major corporations with logistics needs, access to a global gateway to the Western United States. Located also near Interstate 15 fwy. and the city of Victorville.
What we like about this Trust Deed opportunity:
- Fully entitled, commercial subdivision with cannabis CUP permits/license approved for 18 lots on Koala Rd
- Cross Collateral of 12 Lot 15.4 acre (Permits Pending) Commercial Land Subdivision
- 12.50% Investor Yield
- 6.06% CLTV
- Cross Collateral of two “free and clear” properties
- 6 months prepaid interest
- 6 months guaranteed interest
