Owner-founder of “Vista Paint” https://www.vistapaint.com/ and real estate investor of a large commercial and residential real estate portfolio throughout Southern California sought a business purpose cash out loan on this “Free and Clear” non-owner occupied commercial investment building just 2 blocks from world-famous El Paseo shopping district Palm Desert, sits right on the primary traffic artery of 111 Hwy on a signal light corner. This is the 2nd commercial property in same village complex that borrower owns “free and clear” that MVI is facilitating for borrower who is pulling cash out from several of his “free and clear” commercial properties to invest in a new real estate development opportunity also in Coachella Valley.
Borrower’s net worth is assessed at $591M which includes his “Vista Paint” company valued at $50M and $392M in real estate assets plus stock/retirement assets. In addition to this real estate collateral with net investor equity of $1,096,243, this loan is backed with a Personal Guarantee by borrower. Borrower’s exit options: pay off loan through business proceeds, personal assets or refinance. Borrower has substantial liquidity to service the loan debt in addition to the subject property’s own monthly rental income. The borrower owns several surrounding commercial properties “free and clear” in same village complex as subject property.
The subject is very well located in downtown Palm Desert, next to El Paseo shopping district right on the primary transportation artery of Highway 111 that offers 4 asphalt-paved lanes. The subject includes 1 commercial building, site totals 0.59 Acres, or 25,700 SF with total rentable building area of 10,000 SF, on-site parking consists of 24 asphalt paved and marked parking spaces with additional parking available on Highway 111. The Subject is located at 73468 Highway 111 and is basically rectangular in shape and fully level street grade with good access and visibility on a signal light corner. The subject building is configured to house two users which includes a 700 SF unit and a 9,300 SF unit. The 700 SF unit is occupied by Sirens Hair Salon and offers a retail area, an office and 1 restroom. The 9,300 SF unit offers a large retail area, 2 restrooms, multiple entrances, 2 office areas, a storage room, and 3 restrooms. The 9,300 SF unit is pending occupancy within 60 days. The borrower is in negotiations with two prospective tenants, one of which is Newport Beach based “Blue Water Grill”. Per the borrower, “Bluewater Grill is a strong prospect to lease the entire unit located at 73468 Highway 111. Bluewater has toured the site, and completed a preliminary budget for T.I. remodel and is in the process of deciding offer terms to submit on their Letter of Intent. The site is ideal for a strong restaurant, like Bluewater Grill, as it is located directly on Highway 111, via hard, signalized corner with abundant parking.”
The annual rental rate for the subject is $170,568 or Triple Net $17.06 (PSF). Cap Rate 6.00%. Subject property is very well located in the revitalization of downtown Palm Desert district, on the 111 Hwy, near El Paseo shopping district, restaurants, hotels, country clubs, neighborhoods, west of the 10 FWY. Long term goal for property is full renovation through T.I. of tenant and support of city’s downtown revitalization project.
What we like about this Trust Deed opportunity:
- “Vista Paint” Owner/Founder with large net worth – liquidity to pay
- Borrower has substantial cash reserves and a large Real Estate Portfolio with Equity
- Great location blocks from El Paseo Shopping district, right on 111 HWY, signal corner lot
- 55.00% LTV
- 53.35% Net LTV
- 10.50% Investor Yield
- Net Investor Equity: $1,096,243
- Monthly Rental Rate $14,214 / Annual $170,568
- 6 months Guaranteed Interest
- 3 months Prepaid Interest
- Low Environmental Report – No Further Action Required
$1,292,500 1st TD @ 10.50%, 55.00% LTV, NOO, 36 mo. term, $51,700 Min Inv., Palm Desert, CA
