Huntington Beach, CA

This loan is a first deed of trust on a five-unit multifamily property in Huntington Beach, CA. Commonly known as "Surf City USA," Huntington Beach is a desirable coastal community in Orange County recognized for its expansive beaches, vibrant downtown district, and recreational amenities. The city offers a mix of established residential neighborhoods, shopping, dining, and entertainment, along with convenient access to major employment centers throughout Southern California. Its coastal setting and established residential market contribute to its long-term appeal. The subject property, located at 101 Huntington Street, is a five-unit multifamily apartment complex situated on an approximately 6,750-square-foot corner lot. Originally constructed in 1965, the property contains approximately 4,316 square feet of building area, featuring a total of seven bedrooms and seven bathrooms. The unit mix consists of one three-bedroom, three-bathroom residence and four one-bedroom, one-bathroom units. Additional amenities include five covered parking spaces, consisting of three garage spaces and two carport spaces. The property is rated in average-to-good condition, with improvements including four remodeled kitchens, four remodeled bathrooms, and updates to two additional bathrooms. The appraisal projects approximately $21,600 in monthly rental income, representing $259,200 in annual gross income, with estimated net annual income of approximately $188,394. The front unit is currently utilized as a drug treatment center, generating higher rental income than the remaining units. The property has been in the Borrower's family since 2011, with the Successor Trustee managing the investment since 2021. The purpose of the loan is to provide cash out to pay off an existing lien cross-collateralized with another property. The Borrower intends to refinance into long-term financing before maturity. The Borrower is a trust, with the Successor Trustee also operating a restaurant business. He owns two additional four-unit properties in Huntington Beach with a combined estimated value of $4,050,000 and approximately $1,850,000 in equity. The loan will have a maturity of 36 months.