Crescent Lenders Assists Borrower in $4 Million Dollar Transaction
Industry: Financial Services
Crescent Lenders, a bridge lender in Los Angeles recently provided a borrower financing for a $4 million dollar tow yard, located in Costa Mesa.
Los Angeles, CA (PRUnderground) June 8th, 2020
The total loan amount is for $900,000 with Crescent Lenders taking a 1st position on $800,000 and another lender taking a 2nd position at $100,000. The light industrial property is located in Costa Mesa.
The private money loan was funded at 9% on the first position, with an LTV of 65%. The term is 18 months and the collateral to be used is the borrower’s other tow yard located in Fullerton, California.
The subject collateral is currently owned by the borrower free, clear and unencumbered.
The Borrower is acquiring a 2nd property in Costa Mesa which is similar to the one in Fullerton. The purchase price of the property in Costa Mesa is $4 million dollars and will also be used for his towing business. The $900,000 dollars from Crescent Lenders will be used as down payment.
The Fullerton tow yard property (that is owned outright by the borrower) was recently appraised for $1.5 million and is leased to the borrower’s towing company for $12,500 a month.
The borrower’s exit strategy is to refinance the $4 million dollar property he is acquiring in 18 months or to significantly reduce the loan balance from the cash flow of his profitable towing business.
About the Borrower
The borrower has excellent credit and owns several properties throughout Los Angeles County and Orange County.
Crescent has funded numerous deals for this particular borrower and deem his character and creditworthiness in the highest regard.
Additionally the borrower has a net worth of well over $25 million dollars and very strong cash flow from his recession resistant tow business.
The borrower is the sole owner of his towing company and has a strong preference to own the properties from which he operates his business.
And he believes it is beneficial to not be at the mercy of rental increases or non-renewal of lease agreements.
Crescent Lenders CEO and Chief Underwriter Mario Padilla, recently commented, “Due to the current poor economic climate caused by COVID-19 we are looking for strong and experienced borrowers and this client fits the bill.”
About the Towing Company
The towing company has 15 locations in various Southern California cities and a corporate office in Whittier.
Family owned and operational for over 40 years, he is constantly looking to expand his business.
A major strength of his towing business are the several long term contracts he has in place with entities such as Auto Club of Southern California and Highway Patrol.
About Costa Mesa
Cost Mesa is located in Orange County, California. It boasts one of the region’s largest commercial clusters, with an economy based around retail, commerce, and light manufacturing.
It is home to the World Famous South Coast Plaza, a global shopping destination with more than 250 boutique stores.
This is the largest shopping center on the West Coast of the United States and has the highest annual revenue of any shopping center ($1.5 billion dollars in sales).
Interesting Fact:
Costa Mesa’s top employer is El Pollo Loco with over 400,000 employees. The famous sitcom series Breaking Bad based the fictional Los Pollos Hermanos restaurant chain on this business.
About Crescent Lenders
Crescent Lenders is a leading private money lender located in Southern California and has been making loans for over 10 years.
They make bridges loans on various types of properties and businesses including light industrial, multi-family dwellings, special purpose, mixed use buildings, parking lots and garages.
If you are looking for a hard money lender in the Southern California region, Crescent Lenders could be the perfect fit for you.
About Crescent Lenders
Crescent Lenders is a direct private money lender located in Los Angeles, California.
They service real estate investors with timely loans when they need them most all across the golden state.
CEO and Chief Underwriter Mario Padilla has funded over $150 Million in private money loans for real estate investors since 2011 across the Golden State.
If you are a real estate investor or fix and flipper looking for a private money loan in the California region, you can contact them on their website or at 213-474-3131.
