Business owner and real estate investor sought a small 2nd TD business purpose cash out loan on this 100% fully occupied, good condition, commercial office building in Chula Vista, San Diego County, CA. Property is well located in an office park next to an Amazon distribution center, Crunch Fitness and K1 Speedway in a commercial-residential neighborhood. The purpose of this loan is to make some minor interior upgrades to subject as well as expand borrower’s boutique restaurant group throughout Ensenada, MX. Exit strategy: sale of subject property.
The 1st mortgage on subject is current, in good standing with M&T Bank with current principal balance of $306K, a 2.00% fixed interest, maturing Dec. 2035 with a monthly payment of $3,541. Lender impounds taxes and insurance.
The subject property is a two-story office building located within a planned office development known as “Venture Commerce Center”, just 8 miles from downtown San Diego. The lot site is 571,971 SF or 13.15 acres and a total rentable area of 2,425 SF. The subject property is 100% occupied with $73,200 combined annual rent. Tenants include a professional photographer, nail salon and business consulting service. The building offers 7 offices, 2 restrooms, front and rear entrances, an interior stairwell, HVAC, a security system and a fire alarm system. The interior build-out is considered to be high quality and in good condition. Onsite parking consists of 4 asphalt paved and assigned spaces with ample common area parking available. The subject is well located near downtown San Diego, in a commercial-residential neighborhood with good access and visibility.
What we like about this 2nd Trust Deed opportunity:
- Good condition building, fully occupied in San Diego County
- 12.50% yield to the investor
- 46.67% CLTV, 45.97% Net CLTV
- 6 Mos. Guaranteed Interest
- 3 Mos. Prepaid Interest
- 1st TD Current, Good Standing with low fixed 2.00% Rate
- Net Equity Protection: $615,904 off new March 2024 Appraisal
$226,000 2nd TD @ 12.50%, 46.67% CLTV, NOO, 24 mo. term, $45,200 Min Inv., Chula Vista, CA
