Very successful, owner-founder of “Vista Paint” https://www.vistapaint.com/ and 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” non-owner occupied commercial investment building just 2 blocks from world-famous El Paseo shopping district Palm Desert, right off the 111 Hwy. Borrower is pulling cash out from several of his “free and clear” commercial properties 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. 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 borrower owns several surrounding commercial properties “free and clear” in same village complex as subject property.
The subject is very well located in downtown Palm Desert, next to El Paseo shopping district, at 44855 San Pablo Avenue. The subject includes 1 commercial building, site totals 0.45 Acres, or 19,602 SF with total rentable building area of 7,500 SF and is located on a commercial street that offers 4 asphalt-paved lanes. The site is basically rectangular in shape and fully level at street grade. The subject building is configured to house 6 users with suites that range in size from 1,000 square feet to 2,000 square feet. Each suite offers a retail space and an office, front and rear entrances, with one or two restrooms, HVAC and a security and fire alarm system. Physical inspection indicated that the interior build-out was good quality and was in good condition as of the date of value. On-site parking consists of 30 asphalt paved and marked parking spaces with additional parking available on San Pablo Avenue. 4 tenant occupants: nail salon, tattoo shop, barbershop and Thai massage; 2 suites are pending occupancy within 60 days. The annual rental rate for the subject is $146,373 or Triple Net $19.52 (PSF). Cap Rate 6.00%. Subject property is very well located in the revitalization of downtown Palm Desert district, right off the 111 Hwy, near El Paseo shopping district, restaurants, hotels, country clubs, neighborhoods, west of the 10 FWY. Long term goal for property is full renovation through support of city’s downtown revitalization project.
What we like about this Trust Deed opportunity:
- 725 “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 blocks from El Paseo Shopping district, off the 111 HWY
- 55.00% LTV
- 53.56% Net LTV
- 10.50% Investor Yield
- Net Investor Equity: $914,942
- Monthly Rental Rate $12,197 / Annual $146,373
- 6 months Guaranteed Interest
- 3 months Prepaid Interest
- Low Environmental Report – No Further Action Required
$1,083,500 1st TD @ 10.50%, 55.00% LTV, NOO, 36 mo. term, $54,175 Min Inv., Palm Desert, CA
