Finance for Luxury Homesites in the Desert

Saturday, May 25, 2019
Borrower   Developer in Tucson, Arizona
Loan   A $50,000,000 three year loan at 12% for the first year,15% the second, and 18% for the third year.
Collateral   1,033 acres in Pima County, Arizona, zoned for single-family housing.
Guarantors   The principal of the Borrower.
Purpose   The loan was needed to pay off the bank finance and to repurchase the back 500 acres of the project, which had been sold earlier with an option to repurchase in order to raise cash for the development.
Exit strategy   The borrower plans to repay us out of the proceeds of the sale of developed lots.
Outcome   The loan is current. The Borrower has closed sales of 23 lots and paid down $21.7 million to date. - all rights reserved

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