Crescent Lenders Provides $1 Million Loan for New Laundromat

Crescent Lenders, a private money lender based in California, has recently financed a loan of $1 million for the acquisition of a commercial property in Huntington, California. This funding supports the purchase of a building valued at $1,440,000, with the borrower contributing 30% equity to the deal. Crescent Lenders supplied the remaining 70% through a first trust deed loan.

The property consists of two adjacent lots, covering a total area of 19,691 square feet. The existing structures, totaling 6,060 square feet, will be transformed into a retail laundromat. The investor has outlined plans to invest an additional $750,000 to fully remodel and connect the two buildings into a larger operational space.

Investment and Renovation Plans

Once the renovations are complete, the laundromat is expected to feature 35 parking spaces, a vital element aimed at enhancing customer access. The anticipated timeline for these renovations is approximately 15 months. The borrower, who specializes in laundromat development, was referred to Crescent Lenders by a long-term client with a successful background in similar projects.

Crescent Lenders’ decision to fund this loan was influenced by several factors, including the acceptable collateral and a loan-to-value ratio of 70%. The borrower has a solid track record, with over 13 years of experience in diverse real estate ventures, and operates another laundromat in the nearby San Fernando Valley, generating more than $1 million in annual revenue.

Financial Backing and Future Prospects

The borrower’s financial stability is further illustrated by an excellent credit score and liquidity estimated at approximately $1.2 million across various bank accounts. The strategic exit plan involves refinancing into a small business loan, which underscores the investor’s intent and preparedness for future growth.

Crescent Lenders is optimistic about this transaction, given the borrower’s proven expertise in the laundromat sector and the sound financial structure backing the loan. As this project progresses, it could significantly contribute to the local economy while meeting a growing demand for laundry services in the community.