|DATE OF FUNDING||08/08/2014|
|GROSS LOAN AMOUNT||$2,686,000|
|LOAN TO VALUE||68%|
|NET NOTE RATE||8.95%|
|TERM OF INVESTMENT||24 Months with 6-month Lockout|
$2,686,000 FOR THE REFINANCE
OF A COMMERCIAL RETAIL CENTER IN SALEM, OR
The sponsor sought $2,686,000 primarily to refinance the current debt on retail center on Commercial St. in Salem, OR. The balance was used to pay off a divorce settlement and real estate taxes. The borrower needed to close quickly to take advantage of a discounted payoff for the divorce settlement. This is the same owner that also refinanced the Stayton OR retail property on 1st Ave.
The property is a fully leased 12 tenant Commercial Strip Center comprised of two buildings in excellent condition. Both buildings total 9,584sf and were built in 2006 and remodeled in 2013.
The immediate neighborhood is a corridor of commercial uses surrounded by residential neighborhoods. Demand in the area is good due to its linking to housing, employment and services, established identity as a commercial corridor and the scarcity of available land. Real Estate values in the neighborhood are anticipated to remain stable or slowly appreciate in accordance with the general trends of the greater Salem area.
The borrower, Rushing Holdings is owned and run by an experienced real estate broker, manager and developer with 25 years’ experience. Borrower financials are strong with excellent net worth and liquidity.
The exit strategy is to obtain traditional bank financing in the next 13-24 months.