A Loan We Declined: Kaysville, Utah Retail Center

We were asked to loan on a small retail strip center in Kaysville, Utah. While it was centrally located, it was not on a corner but located to the side of a corner property that had strong traffic patterns.

The prospective borrower provided information that backed up a value in excess of $1,300,000.  We inspected the property and had concerns about its visibility but also its vacancy level.

We determined our own value based on existing rents and a conservative expense projection. Our valuation was considerably lower than what the customer originally wanted to borrow. As a result, we passed on the transaction.