Panama City Commercial Bridge Loan Highlights

An existing self-storage facility comprised of 31,760± square feet of rentable area in 215 self-storage units built on a 141,570-square foot parcel of land. There is approximately 4.40-acres of additional land, of which 1.8-acres is considered excess and 2.6-acres of surplus. The surplus is either on the other side of drainage ditches and-or improved with a city pump house. There is also a high voltage power line that runs through the excess/surplus land. The total land area including primary, and excess/surplus is 7.65-acres. Constructed in 2003, 2004 & 2005, the subject is currently 93 percent occupied and is considered to be Class B in terms of physical and investment quality. However, the subject is not operating at a stabilized economic occupancy. Therefore, we have forecasted the subject to be physically and economically stabilized as of year-3 of our analysis.

About the Neighborhood

The property is located in the City of Panama City in Bay County. Generally, the boundaries of the immediate area are The Gulf of Mexico to the south, US 231 to the north, St. Andrews Bay to the west and State Highway 719 to the east. The Central Business District of Panama City is located approximately 2 miles west of the subject property. Panama City Beach is one of many gulf-front resorts in the Florida Panhandle (adjacent Destin & communities along 30-A directly to the west). As such, much of the city is devoted to beachfront hotels, condominiums and vacation houses and the area relies heavily on a tourism/real estate-based economy. However, over the past 5 to 10 years, the Crestview-Fort Walton Beach-Destin area to the east has become the 15th fastest growing metro area in the United States, including Panama City have become popular bedroom community areas because of their proximity to the Gulf of Mexico.

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.