Successful business owners and operators sought a 1st TD to consolidate their existing and current 1st TD $2.4M and 2nd TD $485k on this industrial building in Lynwood, Los Angeles County, CA. Borrowers have invested approx. $1 Mil. in manufacturing and distribution related improvements since purchasing building in 2018.
The subject property is an industrial building with 12,601 SF net rentable building area sitting on a 29,960 SF lot. The subject property is currently being used as a manufacturing, packaging, warehouse and distribution center for fully permitted and licensed cannabis related business. The subject property is fully occupied with 9 cannabis business related tenants, earning $79,500 in monthly rent. The borrowers own Magnolia Extracts which is the master tenant who sublets to cannabis related businesses that complement and work with one another to create a vertical integration from manufacturing, packaging, warehouse to distribution all out of this subject property. Subject property earns more than 3x monthly rent ($79,500) compared to this loan monthly payment ($25,826).
The subject property is very well positioned, in a centralized location for distribution and transport servicing all Los Angeles, Riverside and Orange counties, sitting up against the 710 FWY and next to the 105 FWY intersect. The subject property is surrounded by like industrial buildings alongside the 710 FWY.
What we like about this Trust Deed opportunity:
- Well centrally located Industrial building
- 57.85% LTV
- 10.00% annualized return
- 100% occupied
- $79,500 rental income
- 6 Mos. Guaranteed Interest
- 6 Mos. Prepaid Interest