Michigan Retail Bridge Loan

Michigan Retail Bridge Loan Highlights

This investment opportunity is backed by a well-secured loan with strong equity protection, featuring a low 32% loan-to-value (LTV) ratio across three commercial assets in high-traffic retail corridors. With a combined appraised value of $4.4 million, this portfolio provides significant downside protection for investors.

The Menominee property, formerly a financial institution, is being converted into a new retail facility, with the borrower investing their own capital to support the renovation. The Adrian property, a 4.41-acre commercial site, is owned free and clear and sits in a highly active retail district, offering excellent long-term value. The Coldwater property, also owned free and clear, is a 1.17-acre commercial asset strategically positioned next to major national tenants, including The Home Depot, reinforcing its long-term viability.

About the Neighborhood

Menominee, Adrian, and Coldwater are high-growth commercial markets with strong economic fundamentals, business-friendly environments, and rising demand for retail space.

Menominee, MI, located along the shores of Lake Michigan, is a key commercial hub with a growing retail sector and consistent real estate appreciation. Its proximity to major trade routes makes it a prime location for business expansion.

Adrian, MI, a city with a thriving retail and business district, benefits from steady commercial demand and strong property appreciation. Its high-traffic corridors and growing consumer base make it an ideal market for retail investment.

Coldwater, MI, serves as a regional shopping destination, with national tenants such as The Home Depot and other major retailers reinforcing strong consumer foot traffic. The city’s expanding economy and high visibility retail corridors make it a low-risk, high-upside location for commercial investment.

Why We Like this Opportunity

This loan presents a secure, well-structured investment, backed by three established commercial properties in prime retail locations. With a low 32% LTV, Yieldi benefits from strong collateral protection and significant borrower equity, minimizing downside risk.

The borrower has an established track record in retail and business management, successfully operating multiple retail and manufacturing facilities. Additionally, they are investing their own capital to convert the Menominee property into a new retail facility, demonstrating their commitment to long-term success.

The exit strategy is clear, with the borrower planning to repay the loan through proceeds from their business. Furthermore, Michigan’s nonjudicial foreclosure process provides an efficient risk-mitigation mechanism in the unlikely event of default.

With a well-capitalized borrower, high-value collateral, and a structured repayment plan, this investment aligns with Yieldi’s commitment to secure and profitable lending opportunities.

Experienced Borrower

The borrower is a successful real estate investor in high-end real estate industry in Florida. He’s sold multiple Florida homes for over $2M+ and has a high net worth and strong liquidity.

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.