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Crescent Lenders, a California-based private money lender, recently funded a $1 million private money loan for the purchase of a commercial property in Huntington, California.
The borrower acquired the $1,440,000 building by investing 30% equity into the deal, while Crescent Lenders funded the remaining 70% with a $1 million 1st trust deed loan.
The subject property consists of two adjacent lots totaling 19,691 square feet of parking and land.
The two buildings totaling 6,060 square feet that reside on the property will be converted into a retail laundromat.
The investor plans to invest $750,000 into fully remodeling and connecting the two buildings into a single, larger building.
Upon completion, the laundromat will have 35 parking spaces, which are a critical component that will attract customers.
The renovations are expected to take around 15 months.
The borrower was referred to us by one of our longtime clients who also specializes in developing laundromats.
Being a former retail CFO and having over 13 years of experience in various types of real estate projects, our client has a proven track record of success along with an excellent credit score and sufficient liquidity, which solidifies our confidence in this transaction.
The 1st Trust Deed loan was funded based on the following factors:
- Acceptable collateral with a loan-to-value of 70%
- Experienced and successful borrower well-versed with these types of projects
- Strong credit and adequate liquidity, reflecting approximately $1.2 million in various bank accounts
- The exit strategy is to refinance into a small business loan
The borrower also operates another small laundromat in the San Fernando Valley, California, that generates over $1 million in revenue annually, with strong net profit numbers.
