Loan Request

1620 Fulton Ave

Sacramento CA 95825

 

General Facts

1.     Approximately 2980+ square feet

2.     Owner will occupy circa 1,100 sq. ft of the building for his watch repair business of 25 years

3.     Fully Leased @ 1.45 & $1.55 NNN

4.     Fulton and Arden, the closest intersection, is one of the busiest intersections in Sacramento

5.     Very strong borrower has additional Real Estate to cross with if necessary 

6.     Looking for a 1- 3  year construction loan or short term combination  construction rolling into a take out.

Numbers:

Based on 1.45 NNN rent with an NOI of $51,473 the finished value will be:

                      8    Capitalization rate =  $645,0000

                      7.5     Cap. Rate =          $687.000

                      7        Cap .Rate =          $735,000

                                       LOAN REQUEST $500,000 to $550,000

 

Mr. Gilian started this project in July 2002 with a promise from his contractor that construction would take no more than 90-120 days. In April of 2003 the original contractor walked off the job leaving the building in disarray and about 50% complete. Several third party inspections were initiated  to insure construction quality and ???.

 

The building is now completed and fully leased. The use of the funds is:

 

            $ 309,000    Pay existing bank first

            $   50,000    Construction Debt

            $ 100,000    Debt

$      ?           Balance in a reserve account for payments and legal    

                            

         

The new lender will be in first position with no other debt on the building at close.