Successful business owner sought a 1st Trust Deed to purchase this owner-occupied, commercial property in North Hollywood, Los Angeles, CA. In addition to our loan, borrower is bringing in $374,000 “skin in the game” cash to close towards purchase. Investor Equity Protection on this new loan is $325,500. The rehab is expected to take about 45 days, at which point, one of the two tenants being interviewed will occupy the 2nd unit at $4,500/month+. The borrower is a partner for another jewelry boutique in Glendale, Mr. Chronograph. While the purchase and rehab is being completed on the subject property, the borrower still operates this other business which has fluid cash-flow. The exit strategy from our loan is a business loan once the property is up and running.
The subject property in a 2-unit commercial building in a popular area of North Hollywood. After he completely rehabs the property, the borrower intends operate his wholesales jewelry casting and manufacturing business in one unit and rent out the other unit. There is already a new tenant lined up. The borrower has been in the jewelry business for many years and this will be his new headquarters.
The subject property consists of 1,325 SF and sits on a 2,624 SF lot. It is located on the busy street of Cahuenga Blvd. in North Hollywood. The site is ‘basically rectangular’ in shape and fully level at street grade. The subject property is comprised of one freestanding building with two suites originally constructed in 1947. The improvements have since been renovated and are located along Cahuenga Boulevard with good access and visibility. Each of the subject suites offer a storefront retail area a restroom a front and rear entrance and HVAC. On site parking consists of 5 marked asphalt paved spaces. The subject is zoned CR, Commercial. According to a zoning official with the City of North Hollywood Planning Department, the district is considered flexible and allows for uses such as office, retail, as well as mixed use properties.
What we like about this Trust Deed opportunity:
- Successful and experienced business owner
- $374,000 current “Skin in the Game” plus personal funds being used for full rehab
- $325,500 in Gross Investor Equity Protection
- 12.00% Annualized Return
- 63.63% LTV on Purchase Price
- 65.00% LTV on Newly Appraised Value
- 6 months Guaranteed Interest
- Clean Environmental Pre-Screen
