Featured Hard Money Loans

$2.1 Million Portfolio Refinance, Mixed Use Office/Civic Theater
San Jose, CA.

SituationBorrower purchased property in 1980’s with a seller carried loan renewed every few years. Due to economic circumstances lender declined to renew loan again. Borrower requested $2.5M from Shepherd Capital Partners to pay off loan, get current on other loans and taxes and complete some capital improvements to property.

PropertyA 15,222 square foot commercial theater with 20 private offices, mostly leased on a month-to-month basis. Property has been extensively renovated and has a growing bookings calendar for musical events, presentations and personal celebrations.

Loan-to-ValueBorrower provided a recent appraisal for just over $3 million. Given the special nature of the asset we revised this valuaton down further still.

BorrowerOver 40 year time frame borrower had built a large real estate portfolio within about a 1 mile area of the theater. Mostly houses and apartment buildings being operated as guest houses. The portfolio ran consistently high occupancies but the borrower had depleted his reserves. Several recent mortgage lates had pushed his FICOs from mid 700s to low 400s.

SolutionBased on the borrower’s long history of meeting his obligations and the seasoning of the portfolio we provided a $2.1 million loan for 2 years. In order to provide acceptable protective equity this loan was backed by the theater itself, an additional six properties in the portfolio, plus a UCC-1 filing on the extensive equipment in the theater: roughly $5 million of net equity for an LTV of 42%.