Hard Money Loan for Commercial Strip Center in Millsboro, Delaware

Equity Lending, Inc., a direct lender for the DMV region, funded a $1,000,000 1st lien position hard money loan for the acquisition of a commercial strip center and 2 pad sites in Millsboro, Delaware. The retail center is located in front of a larger Harris Teeter anchored shopping center which provided a significant amount of traffic and interest to the location. It was partially leased and produced about $9,500/mo in gross rents with potential for significantly more. In addition to a first deed of trust on the small strip center, the Borrower also included a 1-acre commercial lot that was owned free and clear, as additional collateral. Our underwriting showed the loan-to-value to be about 60%. During the term of the loan, the Borrower was able to complete the lease-up, lower operating expenses to further improve cash flow, and obtain traditional bank financing based on the new and improved financials. The interest rate was 12% and we charged 4% origination points. The loan term was set at 12 months. This CRE hard money loan was funded in June 2016.