The collateral for this loan is 15.09 acres of land on the Southwest corner of W Cactus Rd and N Reems Rd in Surprise, AZ (approximately 30 miles northwest of downtown Phoenix, AZ). Since the borrower went under contract to acquire the site 15 months ago, they have successfully worked with the city to approve a 150-unit apartment complex. Of the 150 units, 22 are studio apartments (15%), 38 are one bedroom (26%), and 90 (59%) are two-bedroom units. The borrower anticipates receiving their grading permit and construction loan in six months, at which point the loan will be paid off. The construction loan for this project will go towards the total project cost of $30,000,000.
Loan Amount: $3,000,000
Yield: 10.5% (Principal Balance ≥ $100,000); 10.0% (Principal Balance < $100,000) Interest is paid monthly in arrears with payments due on the 1st of each month with a 10-day grace period.
Term: Nine months with an optional nine-month extension at maturity.