Investment Highlight
Investment Summary
Investment Summary
Type | Underlying Asset | Underlying Security | Guarantee |
Borrower Payment Dependent Note | 18 Townhomes | 2nd Position | Resinova TH Inc |
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
Cost | Use 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 |
3. Property Details
Address: 7682&7692, 9th 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 [TBD]
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 Builder, 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.
The latest cost to date,budget and capital stack
Property Details
Property
Details
About the Developer (Borrower)
Risk
