25 years successful entrepreneur, business owner and real estate investor is sought a 1st TD to pay off an existing, current $1.1M 1st TD that is in good standing on this commercial building in Monterey County, CA. A portion of funds will be placed into funds control and the remaining balance will be used for expansion of borrower’s cannabis brand.
Borrower has significant “skin in the game”; borrower invested $800K in personal funds to fully renovate the subject property and another $800K to purchase 8 prefab extreme pods that will be permanently attached to subject building through this loan’s Funds Control. Total borrower “skin in game” invested into this subject property = $1.6M. This recent appraised value is only based on its Industrial – Commercial Use Comps, no added value given to Cannabis Use.
Of the $1M required to achieve $4M After Completion Value, the borrower has already paid for 80% of that budget by purchasing the prefab buildings currently warehoused 1/2 mile from subject property. $200K of this loan will be placed in Funds Control to pour concrete slabs and permanently affix prefab buildings within 3 months of this loan’s closing.
Borrower has multiple exit strategies: pay off this loan through business proceeds, refinance, sale of property or sale of business. Business financials and overview in investor dropbox.
The subject property is a one story, in very good condition, fully renovated commercial-industrial building with concrete foundation that will be comprised of a total of 5,568 SF rentable space located on a 43,162 SF parcel with two 12’x12’ grade level rollup doors, office buildout, secure manufacturing/extraction, packaging, storage and distribution areas, two restroom modules and gated open parking area. This subject property is 100%, fully occupied, single tenant, borrower’s cannabis company, pocket to pocket lease $25,000 mo./lease. All required state and local cannabis licenses and permit in place. All licenses renewed annually with a renewal fee.
Subject property is very well located in Monterey County next to Big Sur State Park, 1 hour south-east from Pebble Beach, just 30 minutes east of Pacific Ocean, just off the 101 freeway and near the “Mesa Del Rey” public airport. The subject property sits just outside downtown King City where there are restaurants, shopping plazas and schools; and is surrounded by similar commercial-industrial buildings.
What we like about this Trust Deed opportunity:
- Very experienced real estate investor and business owner of several business – well diversified
- 14% Investor Yield
- $25M in Schedule of Real Estate (investor dropbox)
- $14M Net Worth and $2.3M cash in bank to support ability to pay (investor dropbox)
- Borrower $1.6M “skin in game” into subject property
- $800K of $1M Required for $4M ARV already paid for by borrower
- Value based only on Industrial Comps – no cannabis value
- 60.00% LTV ARV
- 6 months guaranteed interest
- $1,600,000 Gross Protected Equity
- Low Risk Enviroscreen Report
- Legally permitted/licensed cannabis business – single tenant/owner-occupied
- Big Sur / Monterey County Location
$2,400,000 1st TD @ 13.50%, 60% LTV on ARV, Comm, 24 mos., 6 mos. Guar., King City CA
