Property Highlights

A 2-story, retail building with 13,312 square feet of gross building. It is occupied by a single tenant doing business as a brewery. The site improvements include off-street parking for 20 cars, and curb cuts at each frontage. The building features a roll up door, exposed beam ceilings, and outdoor seating. The building interior offers seating area, retail space, bar counter, a full commercial kitchen as well as warehouse space used for the distillation process, employee offices, and a balcony.

Palmetto Distillery is the name of the long standing brewery that has become a staple in the town. They have been in business since 2011 and recently did an extensive renovation with the majority of their own funds. They just has a few items left to be done which will be covered by the construction reserve holdback.

About the Neighborhood

The City of Anderson is located in the northwest corner of the state of South Carolina on the Piedmont Plateau. It is the county seat located in the geographical center of the county and principal city in Anderson County. The City is ideally located on the busy Interstate 85 corridor, to which much of its economic growth can be attributed. The City lies on the southern border of Interstate 85 and is approximately 127 miles north of Atlanta, Georgia and 132 miles south of Charlotte, North Carolina. The City encompasses approximately 14 square miles and is located in the geographical center of the county. The I-85 corridor from Atlanta to Charlotte is now known as one of the nation’s hottest growth areas. Anderson County, South Carolina lies midway between Atlanta, Georgia and Charlotte, North Carolina. This stretch of highway is one of the heaviest traveled highways in the southeast. Business leaders and development officials in Anderson have taken advantage of this asset, and visible progress is the result. Anderson County was ranked 14th out of 50 as on of the “Hottest American cities for business location,” (based on a survey of leading site consultants) according to the January 2001 issue of Expansion Management.

Anderson is a major contributor to the success of the upstate. Anderson offers all of the basics upon which to build a thriving economy, including affordable land, a good transportation system, infrastructure, and a large number of recreational amenities. In June 2000, Anderson County was one of only ten communities to be designated an All-America City by the National Civic League. The Anderson community offers the feel of small-town living with the attractions and business opportunities of larger cities only a short drive away.

Why We Like This Opportunity

This is a first position mortgage with an excellent loan to value ratio of 60% with a property value of $1,200,000.00 and a total loan amount of $600,000.00.  The two brothers/borrowers are from Upstate SC and are dedicated businessmen with a taste for whiskey. Southern to the bone, the brothers have a strong dedication to their craft and a passion for keeping their heritage alive through the spirits they create.  The brothers’ journey began back in 2011, when they opened the doors to South Carolina’s first legal moonshine distillery. Their new business venture was a lifelong dream for the boys, who reveled in southern heritage and family tradition. Largely inspired by their infamous relative, Dock Boggs, the brothers continued their family’s bootlegging legacy with the origination of their signature White Lightning Moonshine.

 

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.

Upfront Reserve

The Loan is structured with interest reserve for further protection.  12 months of debt service payments will be collected at closing.