Paint” https://www.vistapaint.com/ and experienced real estate investor of a large commercial and residential real estate portfolio throughout Southern California sought a business purpose cash out loan on this “Free and Clear”, fully occupied commercial investment building. Subject sits just 1 block from the world-famous El Paseo shopping district in Palm Desert. Borrower owns many “free and clear” commercial properties in area and is pulling cash out to invest in a new real estate development opportunity also in Coachella Valley.
Borrower’s net worth is assessed at $591M which includes his “Vista Paint” company valued at $50M and $392M in real estate assets plus stock/retirement assets. This loan is backed with a Personal Guarantee by borrower. Borrower’s exit options: pay off loan through business proceeds, personal assets or refinance. Borrower has substantial liquidity to service the loan debt in addition to the subject property’s own monthly rental income.
The subject is very well located in downtown Palm Desert, 1 block from popular El Paseo shopping district right on high traffic Highway 111. The property consists of 1 building with 6,000 SF of net rentable space, sitting on two contiguous parcels that together totals 0.44 Acres, or 19,166 SF. The subject property is fully occupied with 4 tenants: fitness, tattoo, nails and a bike/brew shop. The annual rental rate for the subject is $131,300 or Triple Net $21.88 (PSF). Cap Rate 6.00%.
The subject building tenant suites range in size from 900 SF to 3,000 SF. Each suite offers a retail, front and rear entrances, with one restroom, HVAC and a security and fire alarm system. On-site parking consists of 27 asphalt paved and marked parking spaces with additional parking available on Highway 111.
Subject property is very well located in the revitalization of downtown Palm Desert district, on the 111 Hwy, only 1 block from El Paseo shopping district, restaurants, hotels, country clubs, neighborhoods, west of the 10 FWY.
What we like about this Trust Deed opportunity:
- “Vista Paint” Owner/Founder with large net worth – liquidity to pay
- Borrower has substantial cash reserves and a large Real Estate Portfolio with Equity
- Great location 1 block from El Paseo Shopping district, right on 111 HWY
- 55.00% LTV
- 53.35% Net LTV
- 10.50% Investor Yield
- Net Investor Equity: $876,994
- 100% Fully Occupied with Tenant Improvements; Annual Rental $131,200 / Monthly $10,933
- 6 months Guaranteed Interest
- 3 months Prepaid Interest
$1,034,000 1st TD @ 10.50%, 55.00% LTV, NOO, 36 mo. term, $41,360 Min Inv., Palm Desert, CA
