Sponsor seeking $2.8MM bridge loan secured by $7-10MM commercial land in Pima, AZ for $450MM Solar Project

We have a Sponsor seeking a $2.8MM bridge loan secured by 470 acres of land in Pima, AZ with market value of $7.3MM to $10.4MM when zoning for Commercial is completed around the end of August 2013.

The land is accommodating the construction of a planned 100 (to 120) MW Solar Project. The $68M Phase 1 of the $450M Solar Project will take 9 months to a year to complete.

Here is the summary:

LAND SIZE: 470 acres

LOCATION: Pima, AZ ( Map http://goo.gl/maps/fxUfg )

CURRENT ZONING: Agricultural

DESIRED ZONING: Currently being re-zoned into Commercial (Should be completed around end of August 2013 - update as of Aug 20)

MARKET VALUE OF LAND (AS AGRICULTURAL): $1.64MM (November 2012 MAI appraisal)

MARKET VALUE OF LAND (AFTER COMMERCIAL ZONING): $7.3MM to $10.4MM (June 2013 BPO using comparables and income approach)

CURRENT DEBT: Loan of $658,000

REQUESTED BRIDGE LOAN: $2.8MM

RATE/TERM DESIRED

  • 12 months with 12-month interest reserve.
  • 12% interest-only
  • Extension if necessary for 12 months at 16% interest-only
  • 1st Position.
  • If desired, 5% JV partner

COLLATERAL: 470 acres of land (commercial zoning)

PROPOSED USE OF LAND: To accommodate construction of the planned 100 (to 120) MW Solar Project.

A 40-year NNN ground lease proposal has been executed on these terms: Pre-operation lease of $250/acre/year with annual payment due on commencement of binding lease. $1800/acre/year when Phase 1 of solar facility is operational.

SOURCES: Cash contribution from borrower $2.25MM to date.

USES: Cover the cost of Engineered Working Drawings, Interconnect Agreement Application Fees, and Power Purchase Agreement Processing Fees associated with completion of the $68MM Phase 1 of the $450MM Solar Project. Currently has one commitment for $68M loan and one commitment for the $450MM loan contingent on getting signed Interconnect and Power Purchase Agreements from Tucson Electric and Power Company.

Proposed uses:

  • Retire existing loan of $658,000
  • 12-month interest reserve: $336,000
  • Three points paid to broker(s): $84,000
  • Sun Dial Engineering/Touchstone Electric: $80,000
  • Mapping infrastructure ESP Engineering Group: $75,000
  • Performance Bond (required by Town of Pima): Unknown at this time
  • General liability insurance: $2200 annually
  • Job trailer and misc equipment: $45,000
  • Preparation of working drawings and Specifications for the planned Phase One Solar Project (for use in the bidding and construction process): $400,000
  • Initial site preparation and related engineering work: $800,000
  • Operating expenses and contingencies: $300,000

EXIT STRATEGY:  Pay off bridge loan with proceeds from either $68MM Phase 1 Construction Loan or $450MM Total Project Construction Loan

Let me know if you have any questions.

Thank you,

Tony Phan
Next Realty Capital

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Hi Tony,   Not a problem.........

Hard Money Mike 443-838-9563

South Ft. Myers FL. Since 1971. fishermike50@gmail

All 50 states. JUST LIVING THE DREAM!

Hi Tony

This is a serious inquiry. We can do both the bridge loan and 450Mn Solar project loan as well. Can you please send details to solutions@interactivecapitalpartners.com.  Looking forward to hear from you.

Regards

Ranil

Tony,

Have you consider a source to fund your entire project:  We can if there is a fit here.  Please see below what we offer.  We have a 30 year track record.  40% of our portfolio of funds go toward Ag related projects including alternative/renewable energy, farms ranches and mining projects.  We understand and fund in the space because of our ability to put insurance on these assets and mitigate our risk.  See below:

International Investment banking group providing 100% funding either debt or equity or combination worldwide! We fund based on the project strength not LTV or LTC.   We are interested in the Energy, Technology, Mining, Real Estate and Business sectors. 30 year proven track record!  


We offer terms that are bank rate or better. No front fees. Principals must cover third party cost prior to closing. Our market is domestic and international. Replies private or contact me directly. We will need an executive summary with proforma or actual income statement for 3-5 years, use of funds statement and exit strategy showing timeline for repayment along with bio/resume of Principal and their team.

 

We provide funding for the borrower’s capital request in the form of debt, equity or a combination and allow all documented expense and fees paid by the borrower to be stacked on top of the funds requested.  We can offer a moratorium on payments until the project is stabilized and cash flowing if the timeline to stabilization is reasonable. 

 

Ron Coleman

NEPCO, INC - GLOBAL CONSORTIUM - FUNDING FOR PROJECTS AND ASSETS IN THE ENERGY, TECHNOLOGY, MINING, BUSINESS AND REAL ESTATE SECTORS

nepcoinc@att.net  770-572-7765; nepcoinc1 -Skype

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