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Finance for former Army Base

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Thursday, October 19, 2017
Borrower   Developer in Tooele, Utah
Loan   A three-year, $10.7 million loan, at 15% for the first year, and 21% thereafter. The money was advanced in stages, as certain conditions were met.
Collateral   A subleasehold interest in 2,965,000 sq. ft. of industrial buildings, standard warehouses, circular tank warehouses and a small amount of office space on 1,179 acres of land (363 developed acres) in Tooele (a suburb of Salt Lake City). When the fee interest is acquired, it will secure the loan. The land was formerly an Army base, which was closed and assigned to the City of Tooele.
Guarantors  
Purpose   Half of the loan was needed to finance tenant improvements in the buildings as they were leased out. The second half of the loan was was needed to acquire the fee interest in the property.
Exit strategy   The borrower expected to be able to repay us out of conventional finance which would become available once sufficient leasing income was flowing from the project.
Outcome   The borrower sold the project at a good profit, and our loan was repaid in full after one year.




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