Property ID #741

Why we like this deal?

Significant potential for this 200,000 sq. ft., 4 story class A commercial office building; includes 100,000 sq. ft. data center.

The project is directed by an experienced team which has executed IT services spaces prior. Their JV partner is a $3.0 billion public company.

The loan to value (LTV) provides a 44.3% cushion of equity.
Additionally, the rental income is $13,850,000 annually and is 4.32 times the debt service coverage ratio (DSCR). This opportunity presents an investor with a commercial note at 15% for 3 years, secured by a recorded first mortgage lien or deed of trust on this property.

Why the bank can’t lend

The bank can not lend as this was an acquisition of an empty building and requires significant working capital for the tenant improvements; while no rental income exists. An asset which our private lenders bridge financing fills the gap till it becomes a bankable asset. Banks should love us.

Risk Analysis

We consider the risk to be medium/low relative to the loan to value (LTV).

Property Summary

Property Type: Office
Property Value: $96,000,000
Loan Amount: $53,500,000
LTV: 56%
GOI: $13,850,000
DSCR: 4.315
Loan Term: 3 years
Amortization: interest only
Recourse: no
Cross Collateral: no
Max Rate: 15%

Borrower Summary

Source of Income: Projected 2018
Documentation: Available
Guarantees: no
Payment History: N/A

Risk Summary

Overall Risk: medium/low
Market Risk: low
Property Risk: low
Borrower Risk: medium