Located in Echo Park, CA, the subject properties include a bar/restaurant, house, and parking lot which are master leased to one tenant. The bar/restaurant and house are located on contiguous parcels and the parking lot is located across the street, directly on Sunset Boulevard. The Borrower purchased the bar/restaurant and house for $2.8M and the parking lot separately for $1M in January 2014. Since that time, the borrower has invested an additional $1.5M in TI’s bringing their total cost basis to $5.3M to date. The TI’s were spent as part of the newly signed 10 year NNN lease to, “The Lost Knight”, (Tenant) which is an established pub/restaurant operator. The current base rent is $24k NNN, with the tenant responsible for CAM reimbursements and, additionally, the landlord collects 1.5% percent of tenant’s monthly gross receipts as a part of rent, which brings the debt coverage ratio to approximately a 1.0x DSCR. The Borrower is a local real estate investor who believes the extensive development and gentrification in Echo Park over the past 5 years will create additional opportunities and additional local demand for new housing, retail, and restaurants/nightlife.
Echo Park, California