1. Loan Purpose: Real estate investors sought a 2nd Trust Deed on this non-owner-occupied property in, Hancock Park, Los Angeles. Borrowers purchased the property in 2020 and paid $375k on Down Payment and have spent $874k to date on the horizontal and vertical development. The borrowers own a family-owned and operated Real Estate Development firm, MlGlobal, that has 20+ successful projects across multiple states. Borrowers have provided a substantial Schedule of Real Estate that is available in the due diligence file. Construction is well underway and the loan proceeds will be used to complete construction on the property. The loan will have $1,000,000 held in funds control to complete construction. A construction feasibility report confirmed that the $1 Mil. construction budget will be sufficient to complete the project. The existing 1st mortgage is with Chase Bank and has a balance of $1,336,786.32, the interest rate of 2.875%, and matures on May 1, 2051.
2. Property Description: The subject SFR + ADU is currently under construction. The plans indicate that the property will be a six bedroom, 5 bathrooms, single-family residence with an attached 2 bedroom/1 bath, 975 sf ADU. The property also will include solar panels. The property is west of Hancock Park, north of the Miracle Mile area, and south of West Hollywood. Estimated rental income for this area is over $17K/month for the SFR and $4k for the ADU. The property is centrally located near shopping, entertainment, museums and private schools. The lot size is 7,334 and the total s.f. of the SFR and ADU is 4,673 s.f. The General Contractor is Rebah Maintenance, GC License # 1069019.
What We Like:
- 60% CLTV and 36.19% Net CLTV
- Affluent West Hancock Park Neighborhood
- $1,000,000 held in funds control
- $1.25 Million of own cash already invested
- Investor Yield of 13.25%
$1,303,000 2nd TD @ 13.25%, SFR +ADU Const., 60.00% CLTV, 18 mo., $52,120 Min., Los Angeles, CA
