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Harlan County, Kentucky
Offering short link
Raise Details
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Gross Offering$1,600,000 USD
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Available Units0.00
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Minimum Investment$100,000 USD
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Maximum Investment$1,000,000 USD
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Open DateFeb 01,2021
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Closing DateFeb 12,2021
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Investment TypeFirst Mortgage
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Maturity12 months
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Real Estate UseLand
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Maturity End DateFeb 15,2022
Type
| Type | Number of Units | Available Units | Cost per Unit | Gross Offering | Annual Yield | Term |
|---|---|---|---|---|---|---|
| First Mortgage | 16.00 | 0.00 | $100,000.00 USD | $1,600,000.00 USD | 24.00% | 12 months |
| Totals | 16.00 | 0.00 | $1,600,000.00 USD |
Executive Summary
Overview. Chesterfield Faring Ltd. (“CFL”) is syndicating a 24.0% Senior A $1.0 million Participation Units (the “Units”) of a $1.93 million first mortgage hard money loan (the “Mortgage”) to Digital Real Estate, LLC (the ‘Borrower”). The Mortgage is secured by a 5695-acre property (the “Property”) in Harlan County, Kentucky valued at $5.5 million solely for the land (the “Land”). In addition, the Property has approximately $12.0 million of coal and rare earths (the “Minerals”) to be mined. To support the valuation, a dated appraisal of the Land, current comparable land sales, and assay report of the value of the Minerals are in the rear of this 0ffering but summarized herein.
Value Proposition. The Land alone being worth $5.6 million makes the Mortgage a 17.56% loan to vale of the Units and 33.3% loan to value for the entire Mortgage. Adding the Minerals, the loan to value decreases to 8.33% and if added with the Land down to only 5.65% loan to value for the Units. Mining assets are typically esoteric real estate assets with few lenders thus the elasticity of the pricing far above market rates.
Highlights
- Unique property in high demand
- High Yield
- Land
- Minerals
Comments
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