7682&7692 9th Street, Buena Park, CA 9062- 2nd lien - BPDN Offering

Carbonell IT Solutions

18 Unit Townhouse Community development project in s located in the heart of Buena Park, Orange County, on 9th Street between the 5 Freeway and Beach Boulevard .
Each home size ranges from ~2,250 SF (~2,000 for AFH)

Update

1. Invesment Summary

The loan on this property will be closed in September, 2024. You, as an investor, shall become a Noteholder and the Fund shall issue a Note when such funds are deposited into the Operating Account of the Fund. Your investment will begin accruing interest once the funds are deposited into the Operating Account of the Fund.

The sponsor plans to develop the project into four phases. Phase 1 consists of the entitlement, site improvement and the development of the four homes. Phase 1 started in November, 2023 and expects to sell all the four homes in September, 2024.  Phase 2 consists of the development of another four homes and expects to sell them out in December, 2024. The AlphaX Debt fund will finance ~$2.65mm of the construction costs for both Phase 1 and Phase 2. The AlphaX Debt Fund expects to make 8 construction draws. The final draw will be released before the completion of Phase 2. 

Use of Proceeds for Phase 1 and Phase 2

Type Underlying Asset Underlying Security Guarantee
Borrower Payment Dependent Note 18 Townhomes 2nd Position Resinova TH Inc
Cost Used of Proceeds % of loan
Remaining construction/rehab $4,574,000 $2,650,000 100%
Total $4,574,000 $2,650,000 100%

2. Budget/Cost to Date for Phase 1 and Phase 2

  Cost to Date Remaining budget Existing 1st lien 2nd lien Borrower Equity
Land Purchase $3,200,000 $0 $995,000 $0 $2,205,000
Soft Costs, property tax and insurance $853,000 $1,245,000 $1,224,000 $752,000 $131,000
Construction Costs $0 $4,574,000 $0 $1,644,000 % $2,930,000
Financing Costs $63,000 $425,000 $11,000 $247,000 $229,000
Total $4,115,000 $6,243,000 $2,220,000 $2,643,000 $5,495,000

 

  • CLTC=46.9%

  • CLTARV=36.7%

3. Property Details

Details
Address 7682&76929th Street, Buena Park,CA 90621
Total Blocks 4
Number of Units 18 Unit Townhouse Community Unit
Living Square Footage ~2,247 Sq.ft to 2,257Sq.ft (~2,009 Sq.ft for AFH)
Total Site Area 30,039 Sq.ft
Bedrooms 2-3
Bathrooms 2-3
Garage 508-516 Sq.ft
Purchase Price $3,200,000
Estimated Rehab Budget $6,250,000 (Exl Financing Cost)
ARV 13,250,000
Current Appraised Value N/A
Sponsor Equity $5,500,000

4. Project Strategy

The sponsor will start to receive financing from the Debt Fund in March, 2024

Following the loan closing, construction is set to kick off shortly and will encompass the following:

  • Underground Utility  
  • Roads/ Streets- Paving 
  • Foundation 
  • Framing 
  • Roofing 
  • Drywall 
  • Windows 
  • Painting 
  • Landscaping

5. Documents

Photos, agreement

6. About the sponsor

Resinova TH Inc is a boutique real estate development and investment company based in Irvine, California with currently over $200 million in assets under management. The seasoned management team boasts a track record of successfully completing more than 300 projects in recent years. Specializing in the Southern California region, Resinova TH Inc focuses its expertise on the flipping of residential properties, as well as both additions to existing structures and new ground-up construction projects.

 

AlphaX Debt Fund has verified the Sponsor has liquid assets above the required contribution amount of $10mm.

The Sponsor’s credit scores is [number]

7. Track Record

  • The team has over +$100 million in assets under management 
  • +300 projects in operation
  • +50 flip projects

8. Risk

  • Prior to making any investment decisions, it is imperative to attain a comprehensive understanding of the inherent risks associated with each investment within the portfolio. We strongly encourage you to conduct thorough due diligence on each deal and seek guidance from your investment, tax, and legal advisors before proceeding with any investment.


    Credit Risk: 

    • Risk: Potential default by the borrower on the loan 
    • Mitigation: The sponsor”s track record is underscored by an absence of defaults in previous loans, reflecting a meticulous adherence to sound financial practices and stringent underwriting standards. The sponsor’s demonstrated capability in successfully managing loans and navigating the intricacies of real estate financing serves as a compelling assurance of its commitment to mitigating default risks.

    Construction Risk: 

    • Risk: Delays, cost overruns, or unforeseen issues during the construction phase 
    • Mitigation: The sponsor has signed the development agreement with Anchor BuilderPi Group, a prestigious General Contractor.

    Project Abandonment Risk

    • Risk: The sponsor decides to halt or discontinue the development before its completion, potentially leaving investors with unfinished projects and financial losses 
    Mitigation: AlphaX Debt Fund positioned as the second lien holder may step in and assume control of the project, mitigating the risk of unfinished developments.