723 credit score borrower, real estate investor and business owner sought a 1st TD to purchase this commercial property in Lancaster, CA in Los Angeles County. Property is currently rented to a long-time tenant since May 1, 2008. Tenant signed a new 10-year NNN lease that began on May 1, 2016 and runs thru April 30, 2026. Current rental income is $19,090 ($6.29/SF) with annual increases of 3% per year for the life of the lease. The rental income will more than service the debt of our new loan.
The subject property is a 2,948 SF free standing commercial building currently being used as a nightclub/bar (zoned Light Industrial). The current use of the commercial building is deemed the “highest and best use” of the property. The total size of the rectangular and level property is 3.88 acres. The size attributed to improvements is .68 acres or 29,623 SF. The excess land size is 3.21 acres. The building features a bar area, lounge area, pool tables area, women’s and men’s bathrooms, breakroom, storage and office area as well as an outdoor covered patio. Subject is conveniently located close to the Sierra HWY and HWY 14.