Deal at a Glance
| Loan Amount | $9,317,000 |
| Property | Rental property, Malibu, California |
| Borrower | Single-purpose LLC, co-owned by two unrelated families |
| Lender | a Ventura County-based credit union |
| Rate | 3.750% fixed |
| Amortization / Maturity | 15-year amortization; matures August 25, 2036 |
| Minimum DSCR | 1.25x |
| Default Rate | 18.000%, triggered by late financial reporting |
| Guaranty | Unlimited personal guaranties from both principals and their family trusts |
| Closed | August 2021 |
The Deal That Walked in the Door
We are Commercial Lending Solutions, a commercial mortgage brokerage based in Los Angeles, and this deal brought us an LLC formed by two unrelated families to jointly hold a rental property along the Malibu, California coastline. Neither family was refinancing an existing bank relationship; this was a fresh credit union underwrite of a jointly held, single-purpose ownership structure with two distinct sets of guarantors standing behind the loan.
Getting a $9,317,000 loan placed against a coastal rental asset with two unrelated ownership groups required a lender comfortable underwriting both families independently, rather than treating the borrowing entity as a single, simple credit. Commercial Lending Solutions specializes in multi-guarantor credit union financing for co-owned rental properties across California.
What Made It Hard
- Two unrelated families as co-guarantors. With unlimited guaranties required from both principals and each of their family trusts, the credit union needed complete underwriting packages, financial statements, and trust documentation from two separate ownership groups simultaneously rather than a single borrower's file.
- A steep default rate tied to reporting compliance. The loan carried an 18.000% default rate triggered specifically by late delivery of annual financials, tax returns, or guarantor financial statements, meaning both families had to commit to disciplined, ongoing reporting for the life of the 15-year term.
- A coastal Malibu asset requiring careful valuation support. Securing a nearly $9.4 million loan against a single rental property on the Malibu coastline meant the appraisal and underwriting had to hold up under scrutiny specific to that submarket's unique valuation dynamics.
How We Ran the Process
Trevor Damyan, a California-licensed real estate broker (CA DRE 02244836), placed the loan with a Ventura County-based credit union, closing August 17, 2021:
- $9,317,000 secured by the Malibu rental property, held by the single-purpose LLC borrower
- 3.750% fixed for the full term, amortized over 15 years with a maturity date of August 25, 2036
- A minimum 1.25x debt service coverage ratio maintained throughout the life of the loan
- Unlimited personal guaranties from both individual principals, plus separate unlimited guaranties from each of their family trusts
- An 18.000% default interest rate triggered specifically by late delivery of annual financials, tax returns, or guarantor financial statements
- Attorneys' fees provisions requiring the borrower to cover Lender's costs and expenses, including attorneys' fees equal to 100.000% of the outstanding principal balance, in the event of collection or enforcement action
The loan closed with both families' guaranties, trust documentation, and financial packages in place, giving the co-ownership structure a single, fully executed credit union loan against their Malibu asset.
"Two families, two trusts, one closing date. The trick was running both underwriting packages in parallel instead of one after the other, so neither family's paperwork became the bottleneck on a Malibu asset this size."
Why We Won This One
Coordinating two unrelated families' guaranty and trust documentation into one closing, rather than treating the LLC as a single simplified borrower, is what let this deal close cleanly with a credit union rather than stalling on an unfamiliar co-ownership structure. Building underwriting packages for both principals in parallel kept neither family's paperwork holding up the other's.
Getting the credit union comfortable with a coastal Malibu rental asset at this loan size also mattered. A property in this submarket demands underwriting that can withstand scrutiny of its unique valuation dynamics, and presenting a clean, well-supported package let the loan close at a competitive fixed rate rather than facing a higher-cost alternative.
Is This Structure Right for Your Deal?
If your ownership group includes multiple unrelated principals or family trusts, finding a lender comfortable underwriting every guarantor individually can be the difference between a stalled deal and a closed one. We arrange permanent loans and owner-occupied commercial loans from a network of more than 1,000 capital sources.
Apply for financing or call us at 310.708.0690 to talk through your refinance.
This is one of 32 closings we have arranged in Los Angeles County. Read about how we work as a Los Angeles commercial mortgage broker, see our Los Angeles commercial mortgage loans, or browse all 46 California closed deals.
Trevor Damyan is a commercial mortgage broker at Commercial Lending Solutions with a background in structured finance at CBRE and Marcus and Millichap Capital Corporation. He specializes in bridge loans, construction financing, SBA programs, DSCR loans, and complex capital structures for investors and developers across all 50 states.
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