High net worth borrower to support ability to pay this loan. Personal Guarantee on Loan. Exit: refinance before maturity date of loan. Liquidating cash on this free and clear – no debt – commercial property to purchase additional real estate in area.
Very successful borrower who is the Owner and Founder of “Vista Paint” https://www.vistapaint.com/ and experienced real estate investor of a large commercial and residential real estate portfolio sought a business purpose cash out loan on this “Free and Clear”, 100% tenant occupied, commercial investment building very well located just blocks from Home Depot, a Walmart Super Store and high traffic Hwy 111 intersection in Cathedral City. This 1st TD loan offers investors a net equity protection of $1,938,578 based on a recent March 2024 appraisal. Subject is fully occupied, earning $328,720 annual rent to service new loan payment.
Borrower is pulling cash out from several of his “free and clear” commercial properties to purchase a new real estate development in the area. Borrower’s net worth is assessed at $591M which includes his “Vista Paint” company valued at $50M and $392M in real estate assets located all throughout Southern California, plus several stock/retirement assets. In addition to the investor protective equity on this subject property, borrower is personally guaranteeing this loan. Borrower’s exit options: pay off loan through business proceeds, personal assets or refinance. Borrower has substantial liquidity to service the loan debt. The borrower owns many commercial properties throughout Palm Desert, Cathedral City and Desert Hot Springs surrounding areas.
The subject property is very well located on Ramon Road, 2 blocks from Hwy 111 high traffic intersection by a Home Depot and Walmart Superstore. The subject includes 1 large, two story commercial building, site totals 10,454 SF or .24 acres with total rentable building area of 17,776 SF. The subject is configured to house 4 tenants and is 100% leased and occupied. The suites range in size from 1,031 SF to 8,769 SF. The building offers ground floor retail and second floor office. Tenants include a “Chick-n-Bun” franchise restaurant, a lounge, vape shop and cannabis cultivation and sales office. Each suite offers a front and rear entrances, with one or two restrooms, HVAC and a security and fire alarm system. Interior build-out is good quality and is in very good condition. On-site parking consists of 30 asphalt paved and marked parking spaces with additional parking available on Ramon Road. Combined tenant Annual Rent is $328,720 with $18.49 PSF Triple Net. Cap Rate 7.00%. Subject is well located off HWY 111 and west of 10 FWY, surrounded by similar commercial plazas and residential neighborhoods.
What we like about this Trust Deed opportunity:
- “Vista Paint” Owner/Founder with large net worth – liquidity to pay
- Borrower has substantial cash reserves and a large Real Estate Portfolio with Equity
- Great location near Home Depot and Walmart Superstore, right off Highway 111
- 53.50% LTV
- 51.69% Net LTV
- 12.00% Investor Yield
- Net Investor Equity: $1,946,717 on recent March appraisal
- Fully occupied earning $328,720 annual rent / $18.49 PSF
- 6 months Guaranteed Interest
- 3 months Prepaid Interest
