Homes at Monument View
Grand Junction, CO
This existing 26-lot mobile home park is being converted with our Fort Homes® modular homes. Over a 12 month period, all 26 lots will be outfitted with modular homes on permanent foundations. The homes will be sold well below the median sale price, allowing the working class families/individuals an affordable housing option that qualifies for traditional home financing.
Investment Offering
$4,385,873
Term
24 Months
Loan-to-Cost
85%
Annual Return
9-10%
Estimated Sales Proceeds
$5,468,000+
8% Funded
Investment Summary
Fort Lending is providing the construction loan to remove the current bank loan and complete the 26 homes. The collateral for the loan is tied to a planned, "attainable housing " community. The property consists of 26 individual lots, which has previously been outfitted with all electrical, plumbing, and foundational infrastructure. As of August 2024, the project is ready to break ground and complete the first batch of 10 homes - slated to be completed by November 2024.
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​The borrower originally purchased the property for $659k in 2022. Over the 2 yrs of ownership, a total of $1.1m has been spent on infrastructure and planning/permitting. After the additional $3m in construction, the plan will be to sell these homes. As an alternative, the project can be held and refinanced.
A total loan-to-value is a conservative 66% with all homes sold or 75% as a rental community.
Loan Details
Loan Amount
$4,385,873
Monthly Debt Service
$36,549
AVG Monthly NOI
$29,083
Debt Service Coverage Ratio(DSCR)
0.80
Debt Yield
7.9%
Use of Proceeds
Financing Costs
$43,858
Reserves
$347,375
Remaining Construction
$3,019,800
Construction Loan Payoff
$974,840
Total
$4,385,873
Valuation
Stabilized Value @ 6% Cap Rate
​$5,817,952
$223,767
Comparable Sales Approach
$6,662,000
$256,230
Valuation Method
Value
Per Unit
Blended Sale/Rent Approach
$6,239,961
$239,998
Address
651 US-50, Grand Junction, CO
Units
26
Year Built
2024
Lot Size
1.91 acres
Land Cost
$659,443
Construction
(to-date)
$974,839
Year Built
2024
Lot Size
1.91 acres
Type
Workforce Housing
About the Property
Risk Analysis
Strength
The Homes at Monument View are "attainable housing" options to the workforce that are commute to Grand Junction daily. With this prime location & low price point, we will stand out in the market and assist in the gap of available homes for sale.
Opportunity
Housing inventory is at one of the lowest points. The Homes at Mountain View provide an additional 26 homes to market - all at a price point over $100k below the median home price. We feel we have an opportunity to fill the current demand, with a majority of the homes selling prior to completion.
Weakness
With the banking environment a bit rocky over the past couple of years, we may have to rely on renting these units. If so, the returns are a bit lower than if all homes are sold. This is unlikely but may pose as a risk to maximizing our returns at sale.
Threats
Our biggest threat is a slowdown in real estate sales. Although rates are coming down, there is a tightening of credit requirements across the board for all forms of debt. We may have issues finding buyers that qualify for traditional financing and will result in renting these units out.
Years of Experience
16
Notes through
Fort Lending
12
Active Notes
1
Active Balance
$2,580,000
Past Maturity
Balance
$0
Current Liquidity
$1,020,689
This borrower has completed 11+ full service projects using Fort Lending's private credit product with no late payments and all loans paid back in-full & on-time.
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Check out some previous projects below:
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O'Rourke
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SFR Fix and Flips
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Apart from projects using Fort Lending, they currently own and operate 50+ units spread across 2 major areas: Butte, MT & Grand Junction, CO.
About the Borrower
FHC Value Add Debt Fund I, LLC - (VDF)
The Value-add Debt Fund (VDF) is the perfect opportunity for investors looking for consistent cash and reduced risk with a secured position. When investing in the Value-add Debt Fund, you can expect to receive a consistent interest payment at an annual rate of 9-10%, which is paid out monthly. This is similar to the interest you would receive from a bank, and your investment is secured by a mortgage on the underlying property.
Investment Offering
$10,000,000
Minimum Investment
$50k
Annual Return