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Deal Details
Private Loan Type
Commercial Property Value Add
Approx. Funding Date
09/16/2022
Property Type
Property City
Redwood City
Property State
CA
Loan Term (months)
12
Lien Type
1st Trust Deed
Payment Type
Interest Only
Purchase Price
$1,800,000
Loan-to-Purchase Price
70%
Borrower's Contribution to Purchase
30%
Source of Borrower's Contribution
Cash
Renovation Budget
$250,000
Renovation Budget Funded
80%
Borrower's Contribution to Budget
20%
After-Repair Value
$3,000,000
Loan-to-After-Repair Value
50%
Renovation Project Scope
Heavy Rehab
Property Neighborhood
Centennial
Location Type
Urban
Property Condition
Fair
Occupancy at Closing
Vacant
Number of Units
1
Building Square Footage
3,000
Lot Square Footage
22,000
Lot Acreage
0.5
Borrower's Plan
Rehab and Rent
Exit Strategy
Conventional Loan
Borrower Credit Rating
Excellent
Broker Commission
$15,000
Deal Summary
*THIS IS A TEST/SAMPLE, NOT A REAL FUNDED DEAL
PLL Lending funded a $1.5M loan secured by an office condominium in Redwood City, CA. The Borrower is an experienced real estate investor with a sizable portfolio of office and industrial properties throughout Silicon Valley. She came across an opportunity to purchase and rehab a 3,000 square foot office space in a prime location. The purchase price was $1.8M. We funded 70% of that, and the Borrower contributed $500K in cash. She plans to do a major renovation of the space to modernize it for a technology company tenant. The budget is $250K, and we are funding 80% of that. The plan is to lease the space upon completion, for approximately $5.00 per square foot, and then refinance with a conventional loan.
We are confident in the Borrower’s ability to succeed with this project. She has excellent credit, lots of assets, and an impressive track record with other office properties. Although the subject property is in an older Class-C building, there is a huge demand for small office spaces in the Centennial neighborhood of Redwood City, which is adjacent to Downtown, and it’s a 10-minute walk to the train station.
The deal was brought to us by a broker who specializes in the mid-peninsula market. He was working with another private lender to fund the deal, but the lender couldn’t perform and had to back out. He charged 1 point and earned a $15,000 commission. We charged 2 points for the origination, and the interest rate is 9% for a 12-month term. For the $200,000 rehab budget, the Borrower will only pay interest on funds drawn. We didn’t require an appraisal, and we were able to close in just 7 business days, in September 2022.
Funded By
PLL Lending
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Dealmakers
Rocky Butani
Founder & CEO
CA DRE Broker Lic. 01893537
Jessica Chast
Borrower / Sponsor
OMG! The best lender I have ever worked with. I'm so greatful to my broker for finding this private lender. All other lenders I've borrowed from in the past require so much documentation and take weeks to close. The pricing is higher than I'm used to, but it's lower than another lender that was going to fund the deal and didn't perform.
Ryan Gos
Broker
Wow! So impressed with PLL Lending. They really came through for my client. I had taken the deal to another Bay Area lender who made big promises and eventually backed out of the deal due to capital constraints. After wasting 2 weeks, I was scrambling to find another private lender. I was lucky to find a better lender that got the deal done in just 7 days. They were very straightforward and transparent.
Rocky Balboa
Lender
This is a great loan for our portfolio. While other private lenders are avoiding office properties, we feel small spaces under 5,000 square feet are in big demand in the mid-Peninsula area. Our previous office was near the subject property, so we know the area and the values. The sponsor's track record is very impressive, and we believe in her business plan for this project. We look forward to funding her other value-add deals in the future.