Successful real estate investor and business owner sought a 1st Trust Deed refinance with Funds Control on these two tentatively entitled residential parcels totaling 244.67 acres known as “Wilshire Road”. These two parcels are portions of the Phase 1 residential development of the much larger 1,375 acres approved “Rancho Lucerne Master Plan” development in Lucerne Valley, San Bernardino County, CA also owned by Borrower.
The purpose of this loan is to pay-off small $381K in existing liens on subject properties and place $979K in Funds Control needed to record the Final Tract Map 15791-2. A registered California Civil Engineer prepared the $979K budget which has already been submitted to the Land Use Services Department. Funds Control budget in investor file. The remaining $200K cash out for working capital. This loan includes 18 Months of Prepaid Interest; equal to the 18-month Loan Term.
To date, borrower has invested over $25,000,000 on improvements on the entire “Rancho Lucerne” project. This includes grading, infrastructure, curbs, gutters, and utilities. Borrower has completed 95% of the horizontal development. Total spent $25.4M. Refer to “Accounting record of Horizontal Development Cost Spent $25.4M” in the Investor Dropbox. Borrower has also been awarded sufficient water rights and utilities to site.
Borrower is ready to record the Final Tract Map 15791-2 which will subdivide subject properties into 10 parcels: 9 parcels are residential 745 residential lots and one parcel is 29.70 acres commercial mix use.
Borrower has two home builders interested in buying 4 parcels. Borrower only needs to sell one of the parcels to pay off this loan. Copies of home builders Letter of Intent to buy are in the investor dropbox.
Exit Strategy: sale of one of the parcels or construction loan to pay off our loan.
The Rancho Lucerne Planned Development is a master planned community designed in response to the market development trends in the “High Desert”. “The Rancho Lucerne Community” when completed will consist of the residential area(s), two school sites, a 27-hole golf course facility, 60,000 SF of office space, 120,000 SF of retail space, and 113 acres of parks.
Lucerne Valley is situated in the high desert of San Bernardino County approximately halfway between Los Angeles and Las Vegas; 20 minutes east of Highway 15 near the communities of Victorville, Hesperia and Apple Valley. The subject properties are also twenty miles from the Big Bear Lake Mountain Recreation Area, an area renown for skiing, boating, fishing, and other outdoor activities. Directly adjacent to the project is the new Lucerne Valley High School. The project is served by two primary highways: State Route 247 to Barstow and Palm Springs, and State Route 18 to Victorville, Apple Valley and the Big Bear Lake Mountain Recreation Area. Interstate 15 (formerly “Route 66”) provides access to San Bernardino, Riverside, Los Angeles and Las Vegas.
Project History: The Rancho Lucerne project was delayed due to real estate market crash in the mid 2000’s as a result borrower put project on hold. Borrower began reinvesting into project in 2018 and is now positioned to record Final Tract Map 15791-2 for the Phase 1 residential development “Wilshire Road” portion of “Rancho Lucerne” Master Plan. As stated earlier, over $25,000,000 has been spent on improvements for the Rancho Lucerne project.
What we like about this Trust Deed opportunity:
- $25M Invested into this Master Plan Community to Date
- 15.00% Investor Yield
- 20.00% As Is Land LTV / 15.13% Net As Is Land LT
- 6 months guaranteed interest
- 18 months prepaid interest & 18 months loan term
- $8,800,000 Investor Protected Equity on this As Is Land Only