Our Offerings
Commercial: Buy & Hold

Litchfield, IL

We have 3,772 square feet of restaurant space located on 0.73 acres built in 2005 and fully renovated in 2019, located just east of I-55 and North of IL-16 with excellent drive-by visibility.

Annual Interest Login for details
Term Remaining Matured
Payment Monthly
Offering Size $315,000

Litchfield, IL Details

Structure

Tax Document
1099-INT
Offering Structure
BPDN
x

SENIOR BPDN - PROMISSORY NOTE SECURED BY COLLATERAL SECURITY AGREEMENT

THIS 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

Investment Amount:

Annual ROI:

$0

Why We Like This Opportunity

Litchfield, IL Highlights

We have 3,772 square feet of restaurant space located on 0.73 acres built in 2005 and fully renovated in 2019, located just east of I-55 and North of IL-16 with excellent drive-by visibility.  The tenant, KBP Foods, is the largest KFC operator in the US with 760 locations in 25 states.  This asset has been successfully open and operating since 2005 and was remodeled to KFC’s newest “American Showman” prototype in 2019 – showing tenant’s commitment to the location!  KFC entered into a brand new 20-Year Absolute NNN lease in 2020 with an attractive 7% rental escalation every 5 years and two, 5-year renewal options.  Nearby hospitality and retailers include: Holiday Inn Express and Suites, Mr. Fuel Travel Center and Truck Stop, Hampton Inn, Walmart Supercenter, ALDI, Dollar Tree, Salvation Army Family Store, NAPA Auto Parts, AT&T Store, and Walgreens.

About the Neighborhood

Litchfield, IL – Keeping it simple where you won’t find any skyscrapers or traffic jams.  That is the motto of this city located an hour between the Illinois State Capital of Springfield and the gateway to the West, St. Louis, MO.  Downtown Litchfield includes an eclectic selection of salons, boutiques, resale and antique shops, along with turn-of-the-century architecture, giving downtown a classic Midwestern vibe.  You can spend a day on the lake at Lake Lou Yaeger boating with no horsepower limitations or enjoy time kayaking or paddle-boarding.  The over 4,000 acres surrounding the lake offers a beach, campgrounds, conservation area, and trails for hiking, biking, and equestrians.  If you are more of a history buff, you can cruise the Mother Road, with two separate alignments of the historic Route 66, from 1930-1940 and 1940-1977 cutting through Litchfield.

First Priority Mortgage Lien Position

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

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

Upfront Reserve

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

What Should I Consider When Investing in Litchfield, IL?

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 Litchfield, IL

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 September 16, 2022 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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