The borrower is seeking approximately $5,000,000.00 to purchase a commercial property with 2 buildings. The property is one parcel of 2.26 acres with 2 buildings in the heart of Los Angeles CA.
One building is used as a paint manufacturing business, A Paint Company, which has been in business there since 1951. This Paint business occupies 1.48 acres, 65% of the property. Paint is owed by individual who is the current applicant for the transactions. There is an environmental impact report indicating there is no remediation needed for the land.
The other building is a 16 unit office building with nearly 100% occupancy and a rent roll producing over $20,000 per month in rent.
The Paint business currently pays rent of $9,000 per month.
The borrower has a home which he will pull cash from for the transaction. The home is located in Rolling Hills Estates and Los Angeles CA. The approximate worth is $1,600,000.00 and there is a balance of approximately $600,000. The house is rented out for approximately $11,000 per month.
The cash which can be pulled out of the house will be used as a down payment for the commercial property purchase. The property is currently in a Trust and a family member is the trustee. The family is looking to sell the property and for the proceeds to be divided between 4 or 5 family members.
There is the rent from the Paint business of $9,000 per month and the rent roll of over $20,000 per month to support the potential financing of this transaction, for a total of $29,000 per month.
The borrower has a 610 Experian credit score with no major derogatories.c