Miami, FL Commercial Real Estate
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The primary property is located on busy N State Rd 7 in Margate, FL (Broward County). It consists of a rectangular shaped parcel totaling 21,989 sf (0.50 acres). The subject is a two-story single tenant office improvement totaling 8,768 sf of usable space. The property is currently configured for use as office space for Working Nurses Healthcare and is 100% owner occupied.
Miami, FL Commercial Real Estate Details
Structure
- Tax Document
- 1099-INT
- Offering Structure
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BPDNx
SENIOR BPDN - PROMISSORY NOTE SECURED BY COLLATERAL SECURITY AGREEMENTTHIS PROMISSORY NOTE IS SECURED BY THE ISSUER'S PLEDGE OF THE RELEVANT UNDERLYING COLLATERAL LOAN (AS DEFINED BELOW) TO THE LENDER (AS DEFINED BELOW) UNDER THE COLLATERAL SECURITY AGREEMENT AND PROMISSORY NOTE. HOWEVER, EXCEPT TO THE LIMITED EXTENT PROVIDED IN THE PROMISSORY NOTE WITH RESPECT TO THE UNDERLYING COLLATERAL LOAN, THIS NOTE IS NON-RECOURSE TO THE ASSETS, FUNDS AND ACCOUNTS OF YIELDI, LLC (THE "BORROWER", "COMPANY" OR "ISSUER") OR ANY OF ITS AFFILIATES, EMPLOYEES, AGENTS, STOCKHOLDERS, PARENTS, OR SUBSIDIARIES EXCEPT TO THE EXTENT OF THE VALUE OF COLLATERAL LOAN NET PAYMENTS ACTUALLY RECEIVED IN RESPECT OF THE UNDERLYING BORROWER LOAN.
Example Return on Investment
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Investment Amount:
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Annual ROI:
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$0
Why We Like This Opportunity
Miami, FL Commercial Real Estate Highlights
The primary property is located on busy N State Rd 7 in Margate, FL (Broward County). It consists of a rectangular shaped parcel totaling 21,989 sf (0.50 acres). The subject is a two-story single tenant office improvement totaling 8,768 sf of usable space. The property is currently configured for use as office space for Working Nurses Healthcare and is 100% owner occupied. There are 3 additional properties being used as additional collateral in this loan and are all owned by the principals of Working Nurses Healthcare. These properties all have significant equity and strengthen our LTV. The first is a fully rented office building, and the second two properties are single-family homes located in the beautiful suburb of Parkland, FL, which is just a short drive from the primary property.
About the Neighborhood
Margate is widely known for its exceptional hometown quality of life and delivery of excellent municipal services. The City provides a wide range of services, including police and fire protection/emergency medical services, water and wastewater services, stormwater services, recreation, public improvements, streets, planning and zoning, and general administrative services. The two residences that are additional collateral in this loan are both located in the City of Parkland, FL. Parkland is s suburb of Fort Lauderdale with a population of 33,772. Parkland is in Broward County and is one of the best places to live in Florida. Living in Parkland offers residents a rural feel and most residents own their home. In Parkland, there are a lot of coffee shops and parks. Many families live in Parkland and residents tend to have moderate political views. The public schools in Parkland are highly rated.
Why We Like This Opportunity
A $2.7mm first position loan on an owner-occupied commercial office in Margate, FL cross-collateralized with 3 additional properties with an excellent LTV of 49%. The borrower purchased the primary commercial property 18 months ago and runs a profitable home healthcare business out of it. Yieldi has a personal guarantee from the two owners of the business, both have significant liquidity. The borrower will refinance into a conventional SBA loan within 12 months to exit from this loan.
Seniority
The first-priority mortgage lien position is the most senior and highest priority within the capital structure. In the event that a borrower defaults, the lien priority determines the order in which lenders are repaid. Senior lenders are always repaid first. All subordinated positions, including the amount held by the Originator and its investor syndicate, act as a buffer in the event of a deterioration in the Properties’ value.
Personal Guarantee
The Loans are personally guaranteed by the borrower, spouse, and all principals in the LLC. Additionally, the Sponsor and/or Guarantor are obligated to contribute monthly payments to maintain a tax and insurance reserve. Failure to adhere to reserve contribution requirements would lead to the triggering of a debt service and operating expense/shortfall guarantee.What Should I Consider When Investing in Miami, FL Commercial Real Estate?
Borrower Risk
The Borrower may not have represented itself accurately. Risk Mitigation- The Originator checks the Borrower's credit history via a third-party credit reporting company. The Borrower has a 700 credit score.
- The Originator considers the underlying asset to be the primary source of security.
- If the Loans are not fully repaid after the Lender has exhausted other sources of repayment, the Borrower has provided a personal guaranty to fulfill any deficiency.
Default Risk
The Borrower may default on his financial obligations. Risk Mitigation- If the Loans are not fully repaid after the Lender has exhausted other sources of repayment, the Sponsor has provided a personal guaranty to fulfill any deficiency.
- In the event of a default, a direction letter signed at closing by the Borrower will be sent redirecting the Tenant to make rent payments into an account controlled by the Originator.
Vacancy Risk
The Tenant may vacate the leased properties. Risk Mitigation- The Tenant is an investment grade rated company with sizable financial resources.
- Under the triple-net leases, the Tenant is under multi-year contract to pay rent with no option to terminate.
- If the Tenant decides not to renew any of the leases or to vacate the leased premises, the Borrower will pay for an appraisal of the property “as vacant” and the borrower will have to provide the additional cash collateral and/or pay down the loan (or any combination in between) within ten days of receipt of the appraisal in order to bring the property back to an LTV.
Investment Summary Of Miami, FL Commercial Real Estate
Investors have an opportunity to invest in borrower payment dependent notes, the cash flow of which is dependent on the payment of interest and principal repayment on the Loans. Investors are scheduled to receive an annualized monthly interest payment of Login for details over the Loans' estimated remaining term of 12 Months. Principal is expected to be returned on or before maturity through a refinancing with a traditional bank loan. It is important to note that the Loans are eligible for prepayment, and principal may be repaid prior to the 12 Months estimated remaining term. If the Loans are paid off before maturity, investors are expected to receive at least three months of interest payments in addition to return of principal.
How Do I Get Paid?
This loan had an initial term of 12 Months with an option at Yieldi's discretion to extend. As of October 2, 2023 there are 12 Months remaining. Investors will immediately receive monthly interest payments at an annualized rate of Login for details on the principal balance over the life of the loan. If you invest in this loan in the middle of a month, you will receive a prorated interest payment for your investment for your first investment month and then full monthly payments thereafter. All payments are made automatically via ACH on the 1st of each month and investors all paid by the 10th of the month.
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