Successful MVI Borrowers and Real Estate Developers sought a 1st TD to purchase this prime multi-family land in the heart of Moreno Valley, Riverside County, CA with proposed improvements to develop the land into a Multi-Family residential development. Borrowers have contributed to and secured $2.2 Million in Equity for this project and have an initial draw of $1.25 Mil. by 7/31/21. $700,000 of these equity funds will be used towards this real estate acquisition with the purchase price of $1.75 Mil. The balance of the $550k in Equity funds will be used for the entitlement process. Total cost for pre-construction acquisition, entitlements and permitting is $2.05 Mil.
The subject property is fully entitled currently for 49 Townhomes and 98 garage and 26 uncovered parking spots. The borrower, FB Flamingo Bay MV, LLC, desires to take full advantage of the Zoning ordinances and upgrade the project to 88 rental units. The subject property is located in the new Downtown City Center on the well traveled Alessandro Blvd in Morena Valley. The subject property is 3.5 Miles from the new World Logistics Center which will be 40 Mil. s.f. of ecommerce related Retail, Office and Industrial space. The site is well located next door to Moreno Valley elementary, near the Moreno Valley Mall, Lake Perris recreational park and close to may other schools, shopping plazas, parks, shops and restaurants. The subject property has easy access to the 215 and 60 freeways. The Inland Empire Apartment Vacancy rate is 2% and has the highest Apartment rent growth in the nation for 12 mos. ended May 31, 2021.
What we like about this Trust Deed opportunity:
- 27.53% LTV on Appraised Value and 51% Loan to Cost
- Borrowers are experienced Real Estate developers
- Borrowers are successful, current MVI borrowers
- 12.00% Annualized Return
- 6 months Guaranteed Interest
- 3 months Prepaid Interest
