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Springfield Office
Offering short link
Raise Details
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Gross Offering$1,917,000 USD
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Available Units0.00
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Minimum Investment$20,000 USD
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Maximum Investment$1,916,000 USD
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Open DateAug 01,2019
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Closing DateAug 30,2019
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Investment TypeFirst Mortgage
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Maturity60 months
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Real Estate UseOffice
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Maturity End DateNov 30,2024
Type
| Type | Number of Units | Available Units | Cost per Unit | Gross Offering | Annual Yield | Term |
|---|---|---|---|---|---|---|
| Series A | 12.78 | 0.01 | $150,000.00 USD | $1,917,000.00 USD | 18.00% | 60 months |
| Totals | 12.78 | 0.01 | $1,917,000.00 USD |
Executive Summary
Chesterfield Faring, Ltd. (“CFL”) is acquiring two (2) first mortgage loans (the “Loan(s)”) with a total unpaid principal balance (“UPB”) of $12.97 million from First Bankers Trust NA (“FBT”) who will finance $8.3 million (the “Bank Loan”) in order for CFL to pay a total cost of $9.3 million (the “Loan Cost”). The cost difference between the Bank Loan and the Loan Cost is $1.0 million (the “Investment”). CFL is seeking the Investment from you as junior loan participants. The Loans are secured by; i) two (2) prime Class A office buildings (the “Buildings”) containing 312,665 SF plus ii) two (2) parking lots (the “Lots”) in downtown Springfield, Illinois. The Loans are currently performing. One Loan matured late 2018 but remains current. The Buildings are valued at approximately $12.0 million (the “Value”). The Loan Cost represents: i) 71.72% Loan Cost to UPB and ii) 77.35% Loan Cost to Value. The net equity is approximately $2.7 million, the difference between the Loan Cost and the Value. The current annual net operating income (“NOI”) for the Buildings (including the Lots) is $841,949.
Participations. CFL is sharing this $1.0 million Investment opportunity with a select number of investor(s) to be loan participants (“Participants”). The Investment is divided into smaller participations (the “Participations”) as follows: i) four (4) $150,000 unit(s) (the “Series A”) totaling $600,000 paying 18.0% per annum on a current basis at 1.5% per month, ii) four (4) $50,000 unit(s) (the “Series B”) totaling $200,000 paying 18.0% per annum on a current basis at 1.5% per month plus an accrual of 50 BPS per month totaling 24% per annum, but if cash flow is adequate, the Accrual will be paid currently, plus iii) the Series C of $200,000 which CFL is purchasing. The Series C is subordinate to both the Series A and Series B, and the Series B is subordinated to the Series A. If repaid in less than six (6) months, the Series A and/or Series B will be paid a three percent (3.0%) exit fee increasing the annual yield of the Series A to 24.0% and the Series B to 30.0%. However, if paid after six (6) months then no exit fee will be paid. Half Units are available for the Series A for $75,000.
Highlights
- Prime Location
- Attractive Profitability
- Full Occupancy
- Positive Sponsor Profile
Comments
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