Successful long-time business owner of “Rincon De Guayabitos” restaurant and his Construction Business Owner sought a 1st Trust Deed cash out refinance on this mixed-use commercial/residential property in Los Angeles, CA. Our borrower purchased the property with a partner in 2006 and the partner has since passed away and our borrower is the sole owner. As additional collateral, we put the Son on the Loan. The purpose of this loan was to pay off existing liens as well as make some improvements to the restaurant and purchase new equipment. The exit strategy from our loan is a commercial refinance.
The subject is a mixed-use commercial/residential property comprised of two freestanding buildings and two parcels. The total site area is 11,639 SF (0.27 acers) and the Net Rentable Area is 2,903 SF. The front building is a 1,953 SF restaurant (known and operated as Rincon De Guayabitos) which has a large dining area, a full service kitchen with a walk in freezers, 2 restrooms, a counter/cashiers area, front and rear entrances, and a fire alarm / security system. At the rear of the subject site is a 980 SF Single Family Residence which has 2 bedrooms, 1.5 bathrooms, a kitchen, and a living room that rents for $1,400/mo. Both buildings are 100% occupied. Onsite parking consists of 20 asphalt paved marked spaces with additional parking available on Whittier Boulevard. The subject property is located in southeast Los Angeles County in the northwest portion of the City of Commerce, CA in close proximity to the I-5 and Hwy-10 freeways. Reported Sales for the Restaurant Operations were $645k in 2022. The parcel numbers for the 6047 and 6049 Whittier Blvd. properties are 6342-036-017 & 6342-036-018.
What we like about this Trust Deed opportunity:
- Long time restaurant business of “Rincon De Guayabitos”
- $620,000 in Gross Investor Equity Protection
- 15.00% Annualized Return
- 39.22% LTV / 37.60% Net LTV on recent Appraised Value
- 6 months Guaranteed Interest
- 3 months Prepaid Interest