*

Property Location: Henderson, Nevada
Property Type: Office Building
Current LTV: 0%
Occupancy: Completed, Fully Leased
Liens - 1st$0
Total Liens: $0
Project Value: $6,600,000 (recent appraised value)


The Project: The borrower is a board certified orthopedic surgeon, specializing in hand and microsurgery. He is purchasing this new structure as an investment. The pride of ownership project is complete and fully leased. Tenants will occupy the facility as soon as the TI's are complete; estimated at 4 months. The income from the doctor's medical practice, along with rental income from other investments will easily cover the debt service for this loan.

In addition to his medical credentials, the borrower is an accomplished real estate developer. He built and owns the office he currently resides in, which is also fully leased, generating a $441k yearly income. He is currently developing a multi tenant office building, which is fully pre-leased and already pre-sold at $14.2M (with $2.5M in escrow).

Purpose of Loan: To purchase an existing office building. It is fully pre-leased and the borrower has $2.6M in escrow towards the purchase. He has an additional $2M in a second escrow; $1M to cover the cost of TI's. The other $1M to increase the current down payment by $600k, leaving an extra $400k for some fees and interest.

Collateral: The property was recently appraised at $6.6M. With the borrowers down of $3.2M the project is at a 52%LTV and should be sufficient collateral for the loan. In addition, the bulding is fully pre-leased. Each of the three tenants has $330k on deposit to cover rent.

Debt Service: The borrower has a documented $60k per month in discretionary income which should more than cover the loan payments. Four months after taking ownership the TI's are slated to be done and the tenants move in. Their $57k per month, NNN income will easily cover the debt service ongoing.

Exit Strategy: Once the tenants are seasoned, the borrower will convert to conventional financing. If for any reason this is unavailable, the proceeds from another project he is developing will pay off the note.

Status: The project is a finished, fully leased structure (occupancy to occur upon completion of the TI's), being purchased for $6.6M in the most desirable pocket of Henderson. The tenants have put up substantial deposits because, frankly, there is no other building of this quality in the neighborhood. The two doctors and attorney renting the three spaces want to be here. The borrower has $3.2M in escrow and requires an additional $3.4M to complete the purchase. New 1st at a conservative 52% LTV!

Requested Loan (plus points, costs and reserves):  
[ New 1st of $3,400,000 - 52% LTV (on recent appraised value) ]
What is this?
Borrowers financial information is password protected. Please call for access.
*