This loan is a first deed of trust on a commercial property located in Panorama City, CA. The subject property consists of a gasoline service station, c-store, tire shop, and small restaurant with approximately 2,134 square feet of net rentable building area situated on an 8,920 square foot commercial zoned site. The owner operates the gasoline service station (1,270 SF) doing business as F1 Fuels with the small Dino Mart convenience store (825 SF). There are two small retail suites leased to the tire shop (484 SF) and a restaurant user (825 SF). The gas station consists of a single canopy with 4 double sided multiple-product dispensers with fuel blenders to allow pumping of three grades of fuel. The Borrower purchased the property in 2016 for $1,710,000. After purchasing the property, the Borrower has since branded the station and invested approximately $232,000 into the property. This included branding signage, canopy renovation, new MPD’s building renovation, electronics and new chip systems. The property currently generates $20,000 per month in rental income from F1 fuels, the tire shop, and the restaurant. The purpose of the loan is to refinance the current lien and provide cash out for the Borrower to finish construction on the expansion of the c-store. Once construction is complete the Borrower will be paying off the loan.
The Borrower is a limited liability company that solely holds this asset. The entity shows strong cash flow depositing the $20,000 in rents each month while keeping an ending balance of approximately $100,000. The two principles/guarantors are 50/50 members of the entity. One of the principals is a repeat SO-CAL borrower who just closed a purchase of a high-end Sherman Oaks SFR. He has strong financials and a great payment history. The other principal also has strong financials showing approximately $170,000 in the bank. He purchased his principal residence for $1,465,000 last year and has a strong credit score of 749.
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