The subject property is a retail location located just east of downtown Long Beach, CA. The surrounding neighborhood is mostly residential, featuring a school, houses of worship, and a mix of national and local retailers. Lease rates at the property are substantially below prevailing market rates. The sponsor is close to finalizing leases with 7-11 for the 311 Redondo space and Continental Laundry (high-tech laundromat) for 301-305 Redondo space. In addition to the retail location, the loan collateral also includes a nearby single-family residence, which will be sold in the next few months for approximately $600,000. The proceeds from that home sale (***Net of Tax**) will be used to pay down the loan, leaving a balance of $1,600,000. All of the current leases at the retail center are month-to-month and/or include a termination clause. Also, the current owners wish to exit the business and retire, which creates ideal circumstances for the new owners to reposition the property.
Long Beach, California