| |
| Tuesday, October 7, 2008 |
| Borrower | A Land Trust owned by a developer and a Hotel Operator on Kissimmee, Florida. | |
| Loan | a $9,600,000 loan at 12% the first year, 15% the second, and $18% for the third year. | |
| Collateral | A 144-unit multifamily rental unit complex. | |
| Guarantors | The principals of the borrower. | |
| Purpose | The loan enabled the borrower to close on the purchase of the complex and start renovation work. The units will be sold to investors who might spend a week each year visiting the Orlando entertainments. In their absence the units are rented out as hotel rooms. The market for this investment is very strong. | |
| Exit strategy | The Borrower plans to pay us off out of the sale of units. | |
| Outcome | The loan is in default. The Borrower has paid down 26% of the principal from the sale of collateral. The loan, however, is in default. |
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