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Commercial: Bridge Lending

Panama City Commercial Bridge Loan

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.

Annual Interest Login for details
Term Remaining 8 Months
Payment Monthly
Offering Size $2,031,000

Panama City Commercial Bridge Loan 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

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.

Location

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.

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.

What Should I Consider When Investing in Panama City Commercial Bridge Loan?

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 Panama City Commercial Bridge Loan

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 February 14, 2024 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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