Seven Canyons is seeking $7.25 million in investment capital to refinance the luxury homesite division of Secret Ridge. Secret Ridge Estates consists of 14 estate lots overlooking the Seven Canyons Tom Weiskopf award winning golf course, with spectacular views of the red rocks of Sedona.
Financing for the purchase, design, and infrastructure construction was obtained from the current lender. All infrastructure and acces to the lots has been completed and public report issued. The principal owed is approximately $16.5 million. This $7.25 million investment will allow for the purchase of the $16.5 million note and cover costs necessary to sell the homesites. Sales of the lots are being handled by an on-site sales staff employed by the developer.
Structure and repayment:
- New $14.5 million, 5 year note, secured with a deed of trust
- Collateral includes all 14 lots on Secret Ridge and lot #19 in Solitude
- New capital investors receive all net proceeds from sales until $14.5 million loan is repaid
- Original investment is returned after 4.5 lot sales
- Estimated compounded IRR over the 5 year note is 40.8%
- $1 million minimum investment units