29.5 acres of land consisting of three (3) parcels zoned
for Low – Density Residential and Light Industrial uses has been
funded. The City of Stockton indicated that annexation and the
processing of the tentative map can be done simultaneously, and for a
commercial industrial project like the subject property should take
approximately six months for approval of the tentative map from the time
of a complete application submission.
The Borrower has a Letter of Intent from a buyer for 1/3 of the subject
property with another offer expected. This process might take 3 to 5
months to complete. This refinance is to facilitate this process.
The appraisals dated July 10, 2007, indicates an “As Is” value of
$5,988,500 ($203,00 +/-) per acre. This would indicate a 56% LTV (Loan
to Value.) As additional security, the borrower will provide a personal
guarantee in addition to the First Deed of Trust.
The note is for one (1) year, paying 12% interest on an annual basis,
paid monthly to the Investors, with a minimum of six (6) months interest
guaranteed. There is a 12 month Interest Reserve which was collected
at closing and held in the trust account. Payments will be made in the
first week of each month.
Some fractional interests may still be available.
If at any time you have any questions regarding the
project, please call Lee Kauftheil at 800-689-8323, Ron Kahn at 650-279-0366, or Greg Meister at
650-400-5599.
