Very successful borrower who is the Owner and Founder of “Vista 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” 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. In addition to the investor protective equity on this subject property, borrower is personally guaranteeing this loan. 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 many commercial properties in this same village complex and surrounding areas as subject property.
The subject is very well located in downtown Palm Desert, next to El Paseo shopping district, at 44850 Las Palmas Avenue right off Hwy 111. The subject includes 1 commercial building, site totals 0.39 Acres, or 16,988 SF with total rentable building area of 5,400 SF and is located on a commercial street that offers 4 asphalt-paved lanes. The subject is configured to house 7 users with suites that range in size from 425 SF to 1,065 SF. Each suite offers a retail space and an office, front and rear entrances, with one restroom, HVAC and a security and fire alarm system. On-site parking consists of 18 asphalt paved and marked parking spaces with additional parking available on Las Palmas Avenue. Tenant occupants: dog groomer, shoe repair, tattoo, pest control, beauty salon; 1 suite is pending occupancy within 60 days. The annual rental rate for the subject is $96,719 or Triple Net $17.91 (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.
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 blocks from El Paseo Shopping district, off the 111 HWY
- 55.00% LTV
- 53.35% Net LTV
- 10.50% Investor Yield
- Net Investor Equity: $629,756 on recent appraisal
- Annual Rent $96,179
- 6 months Guaranteed Interest
- 3 months Prepaid Interest
$742,500 1st TD @ 10.50%, 55.00% LTV, NOO, Comm, CO, 36 mo. term, $37,125 Min Inv., Palm Desert, CA
