An experienced real estate investor and previous client purchased a corner lot in the heart of Old Town San Diego for $1,250,000. He received favorable seller carryback financing for a 1st Trust Deed $625,000 loan or 50% LTC and put $625,000 cash down. The borrower obtained a Conditional Use Permit for a parking lot, accommodating 35 parking spaces. The plan is to improve the lot into a for lease parking lot. The borrower wanted a hassle-free 2nd Trust Deed loan for the hard and soft costs. He is negotiating with several parking lot companies that would master lease the lot.
Fidelis Private Fund closed a $250,000,000 short term 2nd Trust Deed loan. The income approach to value once stabilized as a for lease parking lot results in a conservative market value of over $2,000,000 or a 44% LTV ratio (combined 1st & 2nd). The exit strategy is to refinance both the 1st and 2nd with a conventional loan once the parking is improved and operating.
The Fidelis Private Fund helped the borrower obtain funds to drastically improve the value of the property well beyond the actual cost.
Another transaction where Fidelis Private Fund is helping our client achieve their financial goal.