Anatomy of an Actium Loan: Industrial Property in Salt Lake County

Situation

A borrower approached us seeking financing for a loan secured by an industrial property in Salt Lake County, Utah. This property was positioned close to the interchange between I-15 and I-215 highways, making it centrally located in the Salt Lake Valley and a desirable location for distribution companies.

Due Diligence

Due to our familiarity with Salt Lake County, we knew the area the property was located in. We visited the property for inspection and found it to be in good condition. In addition, we spoke with a local real estate agent who had maintained an office in the area for many years to better grasp the market for the area.

Decision

We decided to grant the loan. We lent 61% of the value of the property for the loan with a duration of six months. The loan earns an agreed upon 12% interest rate on top of a 2% origination fee, making a potential annualized return of 16% if the loan is repaid at maturity.