This loan is a first deed of trust on an apartment building/resort in Desert Hot Springs, CA. The subject is currently used as a private luxury resort spa with 10-individual units and a 2-bedroom home. Additional features of the property are an office, laundry and spa rooms, a jacuzzi building with an indoor jacuzzi and shower, a steam room, a large pool, multiple fire pits, bar and barbeque areas, and 132-degree natural well water, with two additional dry wells. Desert Hot Springs is built over one of the world's finest natural hot mineral water aquifers. With its elevated views of the Coachella Valley and thousands of acres of gorgeous mountain preserves, it is one of the fastest-growing communities in Southern California! Minutes from an international airport, golf, shopping, renowned restaurants, major sporting events, and more! The Borrower is purchasing the property via a 1031 exchange and will be completing multiple renovations before opening the newly updated resort. The business plan is to upgrade the pool, including the deck, update the mineral well water pump, add solar panels, and refurbish all rooms by updating all bathrooms, kitchens, flooring, and painting. Approximately $150,000 will be spent to upgrade the property. By maturity, the resort will be generating enough income for the Borrowers to be able to refinance into a long-term loan. Rental Rates in the Desert Hot Springs Area are between $550-$1,250 for Studios to 2-bedroom apartments; and rates of $279-$500 per night for spa hotel rooms.
Net Yield to Investor