Real estate investor and successful business owner sought a $810K 2nd Trust Deed loan on this non-owner-occupied, multi-tenant commercial-office building in La Habra, Orange County, CA. In addition to this subject property, borrower owns the lucrative “Imperial Spa” in Fullerton, CA with a branch in Las Vegas, NV. The Imperial Spa – Spa in Orange County I Spa in Fullerton l Spa in Las Vegas l Special Treatment l Body Scrub Treatment l Massage Therapy
The purpose of this loan is to refinance out of an existing, current and in good standing 2nd TD that is maturing and pull $300K cash out for cosmetic upgrades to subject property (interior/exterior paint and new flooring) to increase subject property market value.
The borrower’s current and in good standing $2.8MK 1st TD is a conventional loan, 30 year @ 6.50%. Exit strategy: consolidate current 1st and our new 2nd TD commercial refinance within 2 years. This loan features $2,490,000 Gross Investor Protective Equity off recent $6.1M As Is Appraisal.
The subject property is a two-story, multi-tenant commercial-office building named “The Offices At Westridge” on Beach Boulevard located in the heart of La Habra, Orange County, CA and is very well located encircled by Trader Joe’s, Lowe’s Home Improvement and Amazon Fresh. The subject property features high visibility and easy access at the intersection of Imperial Highway and Beach Blvd. The subject property features high parking ratio (112 total parking spots), a communal courtyard, 2nd floor wrap around balcony with view and great tenant visibility signage. The subject property consists of 32,974 SF of leasable office space and sits on an 88,906 SF lot.
The subject property features 26 office units. The tenant mixture are offices, insurance office, financial service office, academies, a church, clinics, a makeup studio, and nail shop. The subject property on Beach Boulevard is surrounded by commercial properties including the national franchise restaurants, strip retail/neighborhood shopping centers, lifestyle shopping centers, and the multi‐family residential communities. The subject property is very well located just 7.8 miles from Disneyland Park, 9.4 miles from Angel Stadium of Anaheim, 17.6 miles from John Wayne Airport, and 18.6 miles from Downtown Los Angeles.
The subject property has easy access to major highways, just 3.8‐miles from I‐5 (Santa Ana Freeway), 4.1‐miles from R‐91 (Artesia Freeway) and is 0.2‐mile from SR‐90 (Imperial Highway).
The subject property is currently 76.20% occupied, earning a gross total of $38,335 per month. Once remodeling is complete on 6 vacant units, borrower intends to attract new tenants to increase maximum occupancy, increasing monthly lease income. The monthly principal and interest mortgage payment on borrower’s current 1st TD is $23,007 and the interest payment on our new 2nd TD is $9,112 monthly. Total 1st & 2nd mortgage payments = $32,119 monthly. The current monthly lease exceeds combined monthly mortgage payments. That number will increase with added tenant occupancy upon minor remodel completion. In addition to lease income from subject property, borrower owns other businesses for multiple sources of income to service both mortgage payments until borrower consolidates both mortgages into a conventional commercial refinance loan.
What we like about this Trust Deed opportunity:
- 734 FICO, very experienced real estate investor and business owner with multiple sources of income to service this new 2nd TD and existing 1st TD
- Very well-located Office Building in La Habra, Orange County, CA
- Multi-tenant income generating
- 12.00% Investor Yield
- CLTV: 58.90% / Net CLTV: 54.92%
- $2,490,000 Gross Investor Protective Equity
- 6 Months Guaranteed
- 6 Months Prepaid