Finance for Acreage in Johnstown, CO

Borrower		A pair of developers in Johnstown, CO
Loan		A $11,000,000 three year loan at 12% for the first year,15% the second, and 18% for the third year.
Collateral		A first mortgage on a 255 acre tract in the town of Johnstown, Colorado
Guarantors		The owners and principals of the Borrower
Purpose		The Borrowers needed funds to buy out a co-investor and to pay for work that had been performed on the property.
Exit strategy		The Borrowers plan to subdivide the property and sell tracts to builders. We expect to be repaid out of the proceeds of sale of tracts in the property.
Outcome		The loan is in default.