|DATE OF FUNDING||1/06/15|
|GROSS LOAN AMOUNT||$750,000|
|LOAN TO VALUE||64.5%|
|NET NOTE RATE||8.95%|
|TERM OF INVESTMENT||24 Months|
$750,000 FOR THE REFINANCE
OF A LIGHT INDUSTRIAL/RETAIL BUILDING IN PORTLAND, OR
The sponsor sought $750,000 to refinance, make improvements and consolidate business debt on a 9,244 sf building located 4 miles east of Portland’s Central Business District. The subject property has been family owned since 1977, redeveloped in 2001 with recent improvements at a cost of $85,000.
The owner occupies 4,244sf of the building where he operates his businesses. The remaining 5,000 is leased to a long term tenant at market rate. Current as is appraised value is $1,162,849
The borrower is improving the basement area to house a one of his existing retail businesses. The build out when complete and will increase the gross size of the building by 300sf to a total 9,544sf at a cost of $75,000. The new estimated value after improvements is $1,250,000
The value before build out psf is $125.79 and ABLP’s loan psf will be $81.13
The value after build out psf is $129.00 and ABLP’s loan psf will be $78.58
Borrowers exit strategy is to seek conventional bank financing in the next 18-24 months.