An experienced real estate investor/repeat client who specializes in retail space was in escrow to purchase an under-performing 20,000+ sq.ft. multi-tenant retail center in La Mesa, CA. The purchase price was $3,200,000. The borrower had $1,225,000 cash to contribute or 38% cash down and had a local financial institution to finance $1,600,000, but was short $375,000 to execute the transaction. The total debt on the property was $1,975,000 including the 1st & 2nd. An appraisal was completed with an “as is” value of $3,520,000 or 56% LTV ratio (combined debt) and once fully stabilized $4,300,000 or 46% LTV ratio. Fidelis Private Fund closed a $375,000 short term 2nd Trust Deed loan along with the conventional lender’s 1st Trust Deed of $1,600,000 for a total debt of $1,975,000. The property “as is” net cash flow will cover both the 1st and 2nd loan debt service. The exit strategy is to bring the property up to stabilized occupancy and refinance both loans with one conventional loan. Value Added
The Fidelis Private Fund stepped in to help the borrower acquire an underperforming asset creating immediate equity with the purchase price less than the ‘as is’ market value. Also, once stabilized occupancy is achieved considerable value will be added.
Fidelis Private Fund closed a $375,000 short term 2nd Trust Deed loan along with the conventional lender’s 1st Trust Deed of $1,600,000 for a total debt of $1,975,000.
Another transaction where Fidelis Private Fund is helping our client achieve their financial goal.