This is a new Secured Loan investment in the Income Series
We have partnered with a specialty finance company that provides short-term loans collateralized by real estate or other quick-sale collateral. The bridge loans are designed as an interim solution prior to the client obtaining long-term financing.
On behalf of its investors, the loan manager specializes in providing asset based financing to seasoned real estate operators for their short-term capital needs. They endeavor to identify lending opportunities secured by income producing real estate in metropolitan areas throughout the United States. The funds used to finance each borrower come from Accredited Investors.
The loan request is for $6.7M and the asset manager will secure the loan on a 1-year old, 72-unit, 100% leased apartment building named Abbey Glenn Apartments in West Point Georgia (southwest of Atlanta). The borrower will have injected over $5.0 million in cash prior to the loan closing.
The strategic goal of the borrower is to quickly refinance the existing loan from a community bank in order to release individual parcels for further development of the planned 1,600 unit complex. The borrower also plans to simultaneously complete the process to secure long-term debt and exit from the loan within 12 months.
The quick-close ability of the loan manager provides a strategic advantage for the Borrower in meeting the construction timeline. In order to further secure the loan, the Borrower is signing a Personal guarantee, with a reported $80+ million net worth with $8 million annual income.
Loan Amount = $6.7M
Term: 12 months
Extension Option: One month option
100% leased
Loan Participant* Yield of approximately 10.5%
75% Loan-to-Value
Guarantor(s) Net Worth is $80+M
* A Loan Participant is an accredited investor acquiring a percent (%) interest in the loan and collateral from a Lender. The Participant is paid its ratable share of principal and all interest as it is collected by Lender. The Lender administers the loans.
