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| Borrower | The developer of a master-planned community in Tooele, Utah. Tooele is just outside Salt Lake City. | |
| Loan | A five year $5.5 million loan at 13% for the first year and 18% thereafter. When this loan was repaid, we made a further $3.5 million dollar loan on the same terms. | |
| Collateral | A first lien on 2,970 acres which were permitted for development as a master planned community in Tooele, Utah. The development is in a beautiful valley with a view of the surrounding mountains and the Great Salt Lake. It will ultimately contain 6,375 single family lots, 1,840 multi-family units, an 18-hole golf course, 200 acres of commercial property and 115 acres of pre-sold institutional property. | |
| Guarantors | The principals of the development company guaranteed the loans personally | |
| Purpose | The loans were required to raise the working capital necessary to put in infrastructure and create the subdivisions in the initial phases of the 10-year project. | |
| Exit strategy | The borrower planned to repay the loans in stages out of the proceeds of the sales of subdivisions to builders. | |
| Outcome | In less than one year they closed on 28 lots, wrote contracts on another 300, and option contracts on another 90 lots for an aggregate of $7,000,000 of lots sold and $2,000,000 of lots under option. The initial loan was repaid in less than two years, and the second loan was repaid in full after a further two years. |
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