United Development Funding Income Fund V (UDF V), a public non-traded real estate investment trust, recently entered into a loan agreement with an unaffiliated single-purpose entity providing an $18,865,000 land acquisition and development loan.
CTMGT Frisco Hills 2B, 5A, 5B, FL-2, LLC, the borrower, will use the proceeds to finance its acquisition of land, the closing costs, and to develop single family residential lots to be sold to homebuilders. The land, located in Little Elm, Texas which is approximately 30 miles north of Dallas, consists of about 58 acres.
The borrower will pay an annual interest rate of 13% or the highest rate allowed by law, whichever is lower. During the loan term, all net proceeds of lot sales will be paid to UDF V. The loan matures January 22, 2017.
UDF V funded $3,369,401 of the loan as of January 23, 2015.
The REIT commenced its public offering in late July 2014 and as of December 10, 2014, it had raised $7.3 million in gross proceeds.
UDF V intends to generate interest income through investments in secured loans and generating profits from residential real estate. It will originate, purchase and hold secured loans for acquiring and developing land into single-family residential lots.
Realty Capital Securities, LLC is the dealer manager for UDF V.