Why we like this deal?
Borrower looking for refi loan on 198,973sf property on 6.48 acres in Pontiac, MI. Property is 100% leased to two tenants, both about one year into new 13 year leases. First tenant is a non-profit human services agency serving local counties and the second tenant is a well regarded charter school. Loan will replace existing 1st mortgage (about $11.5M) and cashout older equity partners who have had cash and personal guarantees tied up for years.
The loan to value (LTV) provides a 37.5% cushion of equity.
Additionally, the rental income is $1,738,826 annually and is 2 times the debt service coverage ratio (DSCR). This opportunity presents an investor with a commercial note at 6% for 3 years, secured by a recorded first mortgage lien or deed of trust on this property.
Why the bank can’t lend
|Loan Term:||3 years|
|Source of Income:||Rental Income|