Deal Details
Private Loan Type
Purchase
Approx. Funding Date
06/20/2023
Property Type
Property City
Los Gatos
Property State
CA
Loan Term (months)
12
Lien Type
1st Trust Deed
Payment Type
Interest Only
Purchase Price
$2,350,000
Loan-to-Purchase Price
56%
Borrower's Contribution to Purchase
28%
Source of Borrower's Contribution
Cash
Location Type
Urban
Property Condition
Excellent
Occupancy at Closing
Owner-Occupied
Number of Units
1
Building Square Footage
2,870
Borrower's Plan
Continue Occupancy
Exit Strategy
Conventional Loan
Deal Summary
Rubicon Mortgage Fund, a direct private money lender, funded a $1,700,000 1st lien position private money loan for the acquisition of a retail property in Los Gatos, California. We funded 56% of the $2,350,000 purchase price, while the Borrower contributed 28% cash plus equity in another property. As a private debt fund, Rubicon can creatively structure financing solutions to fit each client’s individual needs. In this case, the Borrower was a tenant who had the option to buy the property. They signed the lease in 2022 and spent around $600,000 on improvements to start an upscale restaurant. They chose to exercise their option when the previous owner decided to put the property on the market for sale. Since the business had been operating for less than 1 year, they were not able to meet the requirements to secure SBA or conventional debt. We creatively structured this deal using both the Los Gatos retail property as well as additional collateral to provide a combined loan-to-value of 56%. The Borrower contributed $650,000 in cash toward the purchase, and they also pledged a condominium unit located in Santa Clara County which was worth around $600,000 and owned free-and-clear of any debt. The retail property was in excellent condition and is approximately 2,870 square feet. The Borrower plans to refinance with a conventional or SBA loan as soon as possible. The loan term was set at 12 months with an extension option. This private money loan was funded in June 2023.
Dealmakers
Cesar Pena
Senior Director - Producer
CA DRE Lic. 01984871