Peer to peer (P2P) real estate lender AssetAvenue has announced funding of a retail building loan in Austin, Texas.
“The Austin loan satisfied each of our four pillars of value: Market Location, Property Condition, Borrower Strength and Loan Structure,” said Kevin Arrabaca, President of Real Estate at AssetAvenue. “Austin is one of the hottest job markets in the country, exceeding the national average for the past 5 years. Also, the property itself has tenants in place for over 20 years, which gave us comfort about the stability of the property’s cash flow and therefore the borrower’s ability to regularly make the monthly loan payments.”
The Austin loan is secured by a 100%-occupied, 55,000 square foot commercial retail property in Austin, TX, with long-term leases in place until 2025. The total loan size of $500,000 represents a 17% loan-to-value (LTV) based on a $2.9 million appraised value of the property. The two year loan has a projected annual return of 8.5%, paid monthly.
“This Austin loan was compelling to us because of its above average yield and low LTV,” said David Manshoory, Founder and CEO of AssetAvenue.
AssetAvenue has positioned their real estate platform to facilitate loan opportunities up to $10 million. The company recently announced raising $3 million to fund their vision of the future of real estate investment.
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