This loan is a first deed of trust on an industrial property in Stanton, CA. The property has a gross building area is 6,384 square feet on a 17,424 square foot lot. Stanton is an incorporated city of Orange County bounded by Cypress, Anaheim, and Garden Grove. The neighborhood enjoys favorable regional access due to its proximity to the 22 freeway, one ¼ miles to the south. The subject is a single-story building with two offices, a warehouse, and mezzanine storage built-in 1981. It contains concrete flooring in the warehouse and vinyl and carpet in the office areas, two restrooms, HVAC in the office areas, and two metal roll-up doors granting access to the warehouse area. The exterior features include thirteen parking spaces, a six-foot concrete block wall along the southern perimeter, affixed lighting fixtures, grass along the west side, and the front of the building.
The Borrower is purchasing the property for $1,725,000 with a small seller carryback of $250,000 due December 2021. The Borrower will bring in approximately $333,000-$417,000 to close escrow. The Borrower’s affiliated entity is the current lessee. They have occupied the building since November 2018, and their lease expired in October 2021. They are currently paying $7,022.40 on a month-to-month basis until the purchase is finalized. Upon acquisition, an affiliated entity of the Borrower’s will continue to lease the property for $10,000 per month. The space is used for the distribution of adult novelties and office administration. On or before maturity, the Borrower will refinance into a long-term loan.
Net Yield to Investor