Concord, CA

This loan is a first deed of trust on a single-tenant retail property in Concord, CA. Concord is a suburban city in Contra Costa County located approximately 30 miles northeast of San Francisco, offering convenient access throughout the Bay Area via BART and major transportation corridors. The city features established residential neighborhoods, parks, shopping destinations, and a central downtown district anchored by Todos Santos Plaza. Concord’s retail market is primarily driven by local consumer demand, with well-located neighborhood and service-oriented properties benefiting from limited new construction and relatively stable occupancy. The subject, located at 1826 Grant Street in Downtown Concord, is a 4,500-square-foot single-tenant retail building situated on a 12,500-square-foot parcel within the Downtown Pedestrian (DP) zoning district. Built in 1956 and maintained in above-average condition, the property is 100% leased to Side Gate Brewery under a triple-net (NNN) lease, providing stable in-place cash flow with minimal operating expenses. The property generates a projected net operating income of approximately $143,701, supported by market rents of $3.00 per square foot per month. The appraised as-is market value is $2,400,000, reflecting a 6.00% capitalization rate. While the current highest and best use is continued operation of the existing retail improvements, the property also benefits from potential long-term redevelopment opportunities due to its downtown location and underlying land value. The Borrower has owned the property for more than two decades. The purpose of the loan is to provide cash out for the Borrower to purchase an investment property in Hawaii and expand the family’s existing farm operation in Hawaii. On or before maturity, the Borrower intends to refinance the loan with a long-term lender. The Borrower is a trust with two relatives serving as successor trustees. One trustee is an entrepreneur who manages a coffee farm and real estate assets and owns an investment property in Walnut Creek with approximately $600,000 in protective equity. The trust currently maintains approximately $162,000 in reserves. The other co-successor trustee is a retired schoolteacher with approximately $42,674 in deposits over the past four months. The Borrowers have FICO scores of 533 and 675. The loan will have a maturity of 24 months.