FIRST MORTGAGE LENDING OPPORTUNITIES – LOS ANGELES, CA – 563 N. HOOVER STREET


The loan was paid back and all investors principal and interest (8% annual to investors) was repaid on August 8, 2018.

FIRST MORTGAGE LENDING OPPORTUNITIES – LOS ANGELES, CA – 563 N. HOOVER STREET

  • First Mortgage Lending Opportunities – Los Angeles, CA – 563 N. Hoover Street
  • FIRST mortgage lending on ground up development of an 11 unit multi family apartment complex in the trendy and affluent Silver Lake area of Los Angeles.
  • Term is 12 months, with a start date of 8/28/2017 and maturity date of 8/28/2018, with a loan to value (after completion) of 56%
  • All loans are RECORDED FIRST mortgages with full protection/collateral rights similar to how banks lend on and record their liens.
  • The Lender (SSG), our Partner, has originated over $30 million of first and second / mezz loans in Los Angeles over the past 5 years with no defaults.
  • Below are pictures of what the Development will look like when finished.
  • The loan was sourced through our Partner’s strong network of Professional Real Estate investors and the Developer’s initial construction loan matured, which was from a private lender like us, so we stepped in and paid off the existing first mortgage and also provided them with a line of credit to finish the construction which they did in a timely manner.
  • Due to the shortage of housing in the LA market, and specifically as it relates to rentals, this was a very low risk transaction given the prime location and low loan to cost of 76%, in addition to the low LTV of 56% noted above.

FIRST MORTGAGE LENDING OPPORTUNITIES – LOS ANGELES, CA – 7920 GLIDER AVENUE


  • FIRST mortgage lending on a single family renovation of an existing 1,520 SF home, which includes adding an additional 800 square feet for a total salable SF of 2,320.
  • House is located in the Westchester area of LA, which is one of the affluent and high demand area on the Westside of LA
  • Term is 12 months but based on speed of repairs, house should be sold by September and loan paid off at that time, (~57% Loan To Value)
  • All loans are RECORDED FIRST mortgages with full protection/collateral rights similar to bank lending
  • The Lender (SSG), our Partner, has originated over $30 million of first and second / mezz loans in Los Angeles over the past 5 years with no defaults
  • Below are pictures of what the house will look like after renovations – this house is one of our comparables (within the same Westchester area) which supports the estimated value after renovation
  • Market prices for similar size renovated homes in the immediate area range from $625 to $736 PSF and the owner has assumed a sale price of $700 PSF.
  • For comparison purposes, our loan, plus interest, would mean the house only needs to sell for $420 PSF which is 40% below the estimated selling price of $700 PSF

FIRST MORTGAGE LOAN – ASSISTED LIVING FACILITY – GLENDALE CALIFORNIA ($3.1 MM NEW LOAN TO PAY OFF EXISTING DEBT)


FIRST MORTGAGE LOAN – ASSISTED LIVING FACILITY – GLENDALE CALIFORNIA

  • Twelve Oaks Senior Living (aka Twelve Oaks Lodge) is a historic retirement community with over 35,000 square feet on 4.5 oak-covered acres located in the northern part of Glendale, California in the shadow of the Verdugo Mountains.
  • The facility is licensed for 63 assisted living beds. The initial renovation plan is complete for the 28 unit/34 bed Oaks Hall building and the Pavilion dining/community building. The remaining renovation plans are underway and expected to be completed in 3Q2018 for 9 more assisted living units and 10 independent living units.
  • Every day of the next decade 10,000 members of the baby boomer generation will turn 65 years old. Seniors are living longer, requiring progressive levels of care and growing more amenable to occupying senior-specific residential communities, especially those that are close to their family, and around major metro cities.
  • Our new $3.1 million loan will be used to repay both existing loans, and fund an estimated $320,000 of renovations for 19 units to be completed by October 31, 2018 and provide for interest reserves and other costs of the loan. As typical, the note will secured by a deed of trust and assignment of rents.
  • The operator expected to achieve stabilization by March 2019 – this loan term is 2 years.

FIRST MORTGAGE LENDING OPPORTUNITIES – LA SMALL LOT AND OTHER LA REAL ESTATE


  • FIRST mortgage lending on new construction – majority of opportunities are focused on the affluent and high demand beach communities as well as the Westside of LA
  • Typical term is 12 -15 months with up to 3-5 month extensions, if needed, (~50% LTV)
  • Loans are recorded FIRST mortgages with full protection/collateral rights similar to bank lending
  • Current Example – Penmar Avenue, Venice Beach
  • Development of 3 new single family homes, 3,300 square feet for each home
  • FIRST mortgage loan (construction plus land) of $3.8 million (50% LTV) needed on 7.9mm value (net of commissions)
  • Land cost ~2.3mm, construction costs ~3.0mm (does not include ~700k of soft costs)
  • Market prices for similar size newly built single family homes are $870-950 PSF

VENICE BEACH FIRST MORTGAGE LENDING – RENDERING OF FINISHED PRODUCTS

FIRST MORTGAGE LENDING OPPORTUNITIES – JACKSONVILLE, FLORIDA REAL ESTATE


FIRST MORTGAGE LENDING OPPORTUNITIES – JACKSONVILLE, FLORIDA REAL ESTATE – FINISHED HOMES

  • First Mortgage Lending – Jacksonville, Florida Real Estate Opportunities – Finished HomesFirst Mortgage Lending – Jacksonville, Florida Real Estate Opportunities – Finished Homes
  • Large Regional Builder with significant presence in Florida, along with offices in Denver and Atlanta
  • 2nd largest builder in Jacksonville with ~700 homes sold in 2017
  • Company has just raised a $30 million Fund and now looking to use modest leverage on project by project basis (one of their investors is the owner of an NFL franchise)
  • Below is their first loan offering:
  • 18 lot subdivision in the Mandarin area of Jacksonville, Florida
  • Land was purchased in late April for $550k and another ~850k of development costs are needed in order for the lots to be ready for home construction
    • Total loan will be ~700k, or 50% of cost
    • Builder plans to construct 1 home per month starting in October / November and will repay our loan pro-rata based on each lot – so ~40k per lot.
    • Interest will be paid monthly from the Fund

FIRST MORTGAGE LENDING OPPORTUNITIES – JACKSONVILLE, FLORIDA REAL ESTATE – STARBUCKS DEVELOPMENT


  • Through our personal relationship, we know the lead Investor who funds a Developer of Starbucks, Convenience store/gas stations and Day Care
  • Developer is located in Jacksonville, Florida who builds mainly in entire state of Florida
  • Developer has over 30 years experience developing various types of commercial developments
  • They fund 100% of the costs of a new Starbucks development – each location site and building specifics are selected by Starbucks Corporate office – thus, no speculative building. In other words, the land is not purchased until Starbucks has chosen the site and signed their lease
  • Each Starbucks has a 10 year signed lease by Starbucks Corporate with two 5 year renewals
  • Value is based on current cap rates (averaging around 5.25-5.5%) for NNN leased new Starbucks construction
  • Loan to value ~80%
  • Loans are usually 12-18 months max as each facility only takes about 10 months to build (8-10 months entitlement process) as average size is ~2,500 square feet and Developer has built numerous Starbucks so process is very streamlined

FIRST MORTGAGE LENDING OPPORTUNITIES – JACKSONVILLE, FLORIDA REAL ESTATE – STARBUCKS DEVELOPMENT

FIRST MORTGAGE LOAN – ASSISTED LIVING FACILITY – GLENDALE CALIFORNIA ($3.1 MM NEW LOAN TO PAY OFF EXISTING DEBT)


FIRST MORTGAGE LOAN – ASSISTED LIVING FACILITY – GLENDALE CALIFORNIA

  • Twelve Oaks Senior Living (aka Twelve Oaks Lodge) is a historic retirement community with over 35,000 square feet on 4.5 oak-covered acres located in the northern part of Glendale, California in the shadow of the Verdugo Mountains.
  • The facility is licensed for 63 assisted living beds. The initial renovation plan is complete for the 28 unit/34 bed Oaks Hall building and the Pavilion dining/community building. The remaining renovation plans are underway and expected to be completed in 3Q2018 for 9 more assisted living units and 10 independent living units.
  • Every day of the next decade 10,000 members of the baby boomer generation will turn 65 years old. Seniors are living longer, requiring progressive levels of care and growing more amenable to occupying senior-specific residential communities, especially those that are close to their family, and around major metro cities.
  • Our new $3.1 million loan will be used to repay both existing loans, and fund an estimated $320,000 of renovations for 19 units to be completed by October 31, 2018 and provide for interest reserves and other costs of the loan. As typical, the note will secured by a deed of trust and assignment of rents.
  • The operator expected to achieve stabilization by March 2019 – this loan term is 2 years.

FIRST MORTGAGE LOAN – COMMERCIAL LOT DEVELOPMENT – JACKSONVILLE, FLORIDA


  • 18 lot commercial development currently underway in growing area of Jacksonville, Florida
  • New highway access road driving growth to this area of town
  • Current Lender looking to sell off 50% of their loan commitment in order to help fund their strong pipeline of various other developments in Jacksonville and statewide
  • The commercial portion of the development should be finished (meaning lots full ready for sale to national tenants such as Starbucks, local hospital, hotel, etc.) by September 2018
  • Remaining piece of the development is 10 acres which is zoned residential – developer currently speaking with large NYSE home builder about their purchase of 8 of the 10 acres
  • The total loan is $8,000,000, of which, the current lender is looking for a co-lender for $4mm and they will subordinate their $4mm portion of the total loan to us – which means as the pads/lots are sold, we get 100% of the proceeds before they do. They also have an equity interest in the development
  • Our portion of the loan estimated to be outstanding ~12-16 months

COMMERCIAL LOT DEVELOPMENT – JACKSONVILLE, FLORIDA

MEZZANINE LOANS – LA SMALL LOT AND OTHER LA REAL ESTATE OPPORTUNITIES


  • Below is the Redondo Beach 3 unit townhome project we closed in May 2016
  • 3 Brand new townhomes all with views of Ocean – 3,200 square feet each
  • Capital Structure as follows for Redondo Beach Townhome Project
    • Bank Loan of $2.8mm, Mezzanine Loan at $.8mm, Equity at $.8mm
    • Term estimated at 15 -18 months
    • Sales modeled at $505 per square foot so combined LTV on 1st and Mezzanine Loan = 78% using NET sales of 4.6 mm (net of 5% commission)
    • Downside protection = ~$395 PSF ($3.6mm/9,600 SF) which is the selling price (before commissions) in order for the Bank and Mezzanine Lender to get 100% of their Principle returned.
    • FYI – Market comps on similar new construction in immediate area are $530-580 PSF
    • Note – Developer had offers in Dec 2016 on 2 of the 3 units at $30PSF (~$535 PSF) higher than our model price which further supported our conservative underwriting of value yet units still being 9-10 months away from completion

REDONDO BEACH MEZZANINE LOAN INVESTMENT – RENDERING OF FINISHED PRODUCT

REDONDO BEACH MEZZANINE LOAN INVESTMENT – ROOFTOP VIEW – CONSTRUCTION UPDATE LATE JUNE 2017