Blackhawk Featured Investment Property

Property ID #796

Why we like this deal?

5 star resort hotel with all amenities being constructed on a 5 acre property at one of the top 10 destinations in the US on the beautiful Monterey Peninsula in CA. This will be the only 5 star resort in the city and the strict design and architecture standards will make it only the 7th hotel worldwide to carry a LEED Platinum certification. Large tourist volume combined with highly affluent visitor base makes this an attractive investment opportunity.

Borrower team has extensive experience in development/construction of several billion $’s of projects worldwide.

The loan to value (LTV) provides a 65.1% cushion of equity.
This opportunity presents an investor with a commercial note at 15% for 7 years, secured by a recorded first mortgage lien or deed of trust on this property.

Why the bank can’t lend

Banks aren’t lending on pre-entitlement projects. Permanent debt will be obtained upon project completion.

Risk Analysis

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

Property Summary

Property Type: Hotel/Motel
Property Value: $215,000,000
Loan Amount: $75,000,000
LTV: 35%
Loan Term: 7 years
Amortization: interest only
Recourse: no
Cross Collateral: no
Max Rate: 15%

Borrower Summary

Source of Income: Hotel rents, restaurant & shop revenues
Documentation: Available
Guarantees: no
Payment History: N/A

Risk Summary

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