Repeat MVI borrower and successful real estate investor is sought a 1st TD on this fully entitled, CUP permitted, city approved commercial 18 lot subdivide on Koala Road, in Adelanto, San Bernardino County, CA. The borrower is also cross collateralizing a fully entitled, CUP permitted, city approved commercial 12 lot subdivide on Jonathan Street, in Adelanto, San Bernardino County, CA with a combined As Is appraised value of $30M. Funds from this loan will be used to refinance out of an existing and current MVI 1st TD $1,375,000 and additional funds placed into Funds Control to install an on-site storm water retention tank-water tech, complete grading and padding for a prepaid 63,000 SF metal framed building arriving to subject property in 3 months. Borrower has already pre-leased half of this new building (31,500 SF x $2.50 PSF) for $78,750 per month, starting on October 1st, 2022 on a 5 year lease. Tenant has already paid borrower the $100K deposit. (lease in investor Dropbox)
Exit strategy from our 12-month loan will be a construction loan and/or sale of any of the As Is 30 sub-divided lots.
$3M of “skin in the game” has been invested into this cannabis campus development project since March 2020. Borrower’s investment includes purchase of land, Pontius Architect, and J.E. Miller & Assoc. Civil Engineer well regarded firms’ costs/fees for drawings and plans; costs/fees to the City of Adelanto for CUP/LDP, taxes, permits, licenses to build and cultivate.
Borrower city approved plans on Koala Road include approval to build nine (9) 63,000 SF two story commercial buildings for cannabis cultivation, warehouse, manufacturing, distribution, and non-storefront dispensary. Borrower is building the (9) 63,000SF buildings to sell or lease to cannabis related tenants for stable, lucrative rental income for $1,890,000 ($64K @ $2.50 PSF) per annum per building. Current market sales value on each commercial building once complete is $12,600,00 ($200 PSF).
The subject property on Koala Road is currently comprised of a single improved parcel, subdivided into 18 (1 acres) buildable, usable lots, situated on 20.0 acres (871,200 SF). The approved 18 lot subdivision has all CUP’s for Cannabis Cultivation in place. The cross-collateral property on Jonathan Street is currently comprised of four contiguous unimproved parcels situated upon 15.4 acres (670,820 SF). Borrower has no immediate plans to develop Jonathan Street until after Koala Rd. is fully developed.
Both subject properties are very well located next to the Southern California Logistics Airport also known as “Victorville Airport” a large commercial use airport designed to provide major corporations with logistics needs, access to a global gateway to the Western United States. Located also near Interstate 15 fwy. and the city of Victorville.
What we like about this Trust Deed opportunity:
- Current MVI Borrower
- 14.50% Investor Yield
- 8.33% Appraised LTV
- 7.66% Net Appraised LTV
- $27,500,000 Gross Protective Investor Equity
- 6 months Prepaid Interest
- 6 months Guaranteed Interest
$2,500,000 1st TD @ 14.50%, 8.33% LTV on As Is, Comm, 12 mos., Adelanto, CA