Borrower
Temple Sinai of Palm Desert
Issuer
Lender: Temple Sinai of the Desert, LLC
The recommended minimum investment amount is $5,000.00
Clicking "Get Started" and communicating your level of interest is not a binding commitment.
$1,100,000
Minimum Loan Goal
$1,250,000
Total Loan Requested
3.50%
Interest Rate
3.24%
Effective Rate
Investment Term
5 years
Funding Progress
96%
Amount Committed to Date
Amount Committed to Date
$1,200,050.00
Total Investors
Total Investors
69
Investors Accepting Reduced Returns
Investors Accepting Reduced Returns
23
* This listing is for informational purposes and is not an offer to sell or a solicitation of an offer to buy any securities. Any offering or solicitation is restricted to qualified prospective investors who are supporters of Temple Sinai, who have reviewed a confidential offering memorandum and who have executed the subsequent subscription documentation. The borrower will review and validate all prospective investors prior to a formal offering being made. Persons accessing this site are deemed to represent that they will not use the information herein to offer to purchase securities in a manner that would violate restrictions set out in the information or any securities laws of any jurisdiction.

Ground Work

Reason for the Loan

Temple Sinai sits on nine acres of land in the heart of Palm Desert. The main Temple building houses the Sanctuary, a smaller Chapel, social hall, a full industrial kitchen, a gift shop, restrooms, several modular classrooms, and temple offices.  The basement of the main building is currently rented to the Calvary Church, from which the Temple receives monthly rent.  The preschool building hosts four classrooms with bathrooms, a large playground, kitchen and offices. Further, there is a large plot of grass that has been left undeveloped and a large parking lot as part of the overall property. Although the main building needs updating, there are clear opportunities that exist for Temple Sinai to better utilize the social hall and facility, as well as expand the campus.

Temple Sinai’s incredibly dedicated finance committee has been working tirelessly over the past number of months to address a decade long issue - the very encumbering $1.1 million mortgage presently in place through the Berger Foundation. This is the remaining balance from the original $3 million dollar loan taken to purchase the land and buildings of our current Temple Sinai location. While we are only responsible for paying interest on the loan, the annual rate of interest is a whopping 7% and our monthly payments are $6,085.

Over the last number of years, this mortgage and it’s very high interest rate have prevented the board of directors and management from:

  1. Reducing the monthly fixed costs;
  2. Expanding our religious, educational, cultural and social programs; and
  3. Building out sustainable, long-term financial and expansionary strategies for the betterment of our community.

Ground Work

The Temple typically operates a tight budget, making it difficult to apply much towards paying down the loan. Recently we conducted an internal audit, which made it clear that paying off this loan will be paramount in securing our Temple’s future growth and development. The number one priority of our five-year Strategic Plan is to put together a “traditional capital campaign” for our community in order to pay off this loan in its’ entirety by the year 2021!

As part of the overall plan, the finance committee is in agreement that a new loan at a lower interest rate is important and therefore necessary to refinance the existing loan. The Temple is providing its community the opportunity to make an investment which will evidence the new loan. This loan will be backed by the very strong collateral assets of the temple building and the land on which it sits, now valued at over $5 million dollars. The Temple has chosen to work with a Bellevue, Washington-based company called Semble to help structure the new loan. For the past nine years, Semble leadership has facilitated low-cost loans between socially minded investors and their nonprofit organizations through its online platform.

This loan approach equates to the purest form of socially responsible investing since each dollar freed up for the nonprofit can be directed toward mission and purpose. The investment opportunity will offer Temple Sinai supporters an annual interest rate of 3.5%. This reduced rate will lower our monthly interest payment to just about $3,200, an annual savings of $34,500! 

By cutting our monthly fixed costs substantially, will be able to accelerate both the ultimate pay down of this new loan as well as assuring the financial stability of Temple Sinai by building the balance sheet strength capable of taking us into the next decade and beyond.

Ground Work

Community Impact

These are extraordinary and exciting times for Temple Sinai under the spiritual leadership and inspiration of our Rabbi, Andrew Bentley, and a dynamic Board of Trustees driven by the talented, focused, and passionate leadership of the Board’s President, Beatrice Eslamboly.

Ask people what they yearn for most and invariably you’ll hear the same answers: to feel close to their loved ones; to rear healthy, happy, and productive children; to have meaningful, lifelong, friendships; to make a contribution with work; to leave the world a better place; and to be a part of the community -- of something larger than themselves.

 

Ground Work

Temple Sinai is a synagogue that practices the principles of Reform Judaism, as it offers a one-of-a-kind place of worship, assembly, study, and celebration. For three decades, we have provided an atmosphere of warmth, inclusion, and kindness: a temple that embraces members and guests alike, providing a safe haven and a vibrant venue for Jewish religious, educational, cultural, and social programs. Our community attracts those who move here primarily to retire. One of the first things they do is seek out a Temple to connect with community. Temple Sinai provides that for them. This is apparent every service where close to half of those in attendance are from out of town. They come for, and ultimately find, a warm place to connect to their Jewish identity. 

Temple Sinai is more than a synagogue. It’s a way of life, a social and moral compass, a home. Temple Sinai is truly “A Place of Family and Torah." Temple Sinai and its leadership have worked very hard to put in place a true L’Dor V’Dor lasting environment and culture-one where our children and their children will thrive and prosper from one generation to another. Mentoring our younger members, guiding them spiritually, educationally and culturally, providing a true home for all that wish to not just perpetuate our Jewish way of life-yet expand and take it to entirely more profound levels!

 

Ground Work

Organizational History

Temple Sinai of Palm Desert was founded on April 23, 1976 by 10 families who realized that there was a community of Jews moving outside of the city of Palm Springs that might wish for a synagogue to exist in their own community. They were correct and the Reform Temple quickly grew to 100 families with 125 children in the religious school with Rabbi William Silverman at the helm. They soon outgrew the church space they had been renting in Cathedral City and decided it was time for a more permanent home.

Manny and Marilyn Rotenberg, one of the founding families, were driving on Monterey one afternoon and noticed an empty lot across the street from the College of the Desert. They realized it was the perfect location and immediately went to the Palm Desert City Hall and put down a deposit on the land. The congregation ultimately approved the purchase and in early 1986, the first Bar Mitzvah was held in the Temple.

Between 1988 and 1996, under the rabbinic leadership of Rabbi Yossi Leibowitz, the congregation grew to over 500 families requiring both an early and late service to occur during the High Holy Days in order to accommodate all of the congregants and their families. From 1996, after the departure of Rabbi Leibowitz, until 2004, Rabbi Citron was the spiritual leader of Temple Sinai. It was during this time that due to the tremendous growth of the membership, discussions about expanding the building on Monterey began to take place. Burt Kaplan however, discovered that a 10-acre church parcel on Hovley Lane was on the market and a decision was made to purchase that property and renovate it to accommodate the Temple rather than try and expand in their current location on Monterey.

The architect who designed the Stephen S. Wise Temple was brought in to help with the renovation plans for the new Temple Sinai site. He designed an appropriate space that would accommodate the growing congregation, while also enabling the use of the Aron Kodesh (Ark) from the Monterey site. The current home of Temple Sinai of the Desert was dedicated on March 4, 2001 with the city of Palm Desert designating that day to be Temple Sinai of Palm Desert Day. Between 2004 and 2014, the Temple had 5 additional rabbinic leaders and membership slowly declined to 278 families until Rabbi Andrew Bentley became the interim in September 2014 and then the permanent rabbi of the congregation in December 2014. Under Rabbi Bentley’s leadership, the Temple has seen a resurgence of membership and today boasts a growing congregation of 349 families.

 

Loan/Offering Details

Temple Sinai is raising investment funds through the sale of Notes in which 100% of the proceeds will be used to finance a loan to Temple Sinai Jewish Community Center of Palm Desert (“Temple” or “Borrower”). In advance of closing on any loan funds, the Borrower will assign all Notes, in addition to the proceeds from the sale of the Notes, into the newly-formed limited liability company, Temple Sinai of the Desert, LLC (“LLC”), in which the Borrower is the sole member. Thus, the loan to Temple will be from the LLC evidenced by a Loan Agreement, Promissory Note, and Deed of Trust on the property located at 73251 Hovley Lane West, Palm Desert, CA 92260 (the “Property”).

The loan from LLC will be used to refinance an existing loan on the Property and address renovations on the existing facility. The minimum loan amount is $1.1 million to refinance the loan with funds released up to $1.25 million to undertake minimal renovations. It is important to review the Borrower’s plan for repayment (“Repayment Strategy”), located in the “Borrower Information” tab, which outlines the plan for reducing principal during the term of the Loan as well as how the Borrower plans to address the balance of the Loan when it matures. Temple is only required to satisfy installment payments on the loan, and is not obligated to make additional principal repayments on the Loan until the loan comes due.

The Notes to be issued by Borrower to supporters of Temple will have a maximum interest rate return of 3.5% for a period of 5 years. Each investor will have the ability to further reduce the rate for their specific Note which results in greater positive impact for the Borrower.

IMPORTANT: All potential investors need to click on the blue button above titled "Offering Memorandum" to read all about the details of the note investment opportunity in Temple Sinai Jewish Community Center of Palm Desert.

Financial Projections

Each potential investor is encouraged to read all information provided within the listing including the supplemental documentation. This includes review of the past, current, and forward-looking financial information provided, as well as documentation on the Property. This supplemental information helps provide context as to the Temple’s credit worthiness and the value of the Property collateralizing the loan.

The past financials show that the Temple has experienced significant losses over the last three years that have depleted its available cash position (total losses of $285,823 between restricted and unrestricted funds). It is important to understand that, in the event the Temple is not able to balance its budget so that revenue is able to cover expenses, there is a high probability that the Temple will be unable to address all of its obligations which includes the LLC loan. The recent history of financial losses, as shown in the financials, would indicate a greater risk of default on the LLC loan which may result in a loss of investment to those that choose to purchase Notes.

Use of Proceeds / Collateral Details

Borrower has set the minimum loan need at $1,100,000 and a maximum of $1,250,000 to refinance an existing loan and address the costs of renovation of existing buildings on its Property. The minimum amount of the loan may be reduced in the event that designated gifts are realized. Below is a list of the ways Temple plans to use the loan proceeds:

  • Refinance loan on the Property currently in place with Berger Foundation totaling $1,100,000;
  • Any additional funds will be used for renovations on the Property. 

The Loan will have a Deed of Trust recorded in the 1st position on the Property. To establish a valuation of the Property, please review the Appraisal provided by a Third Party, which indicates an as-is value of $5,845,000 as of April 16, 2015. Assuming a total loan amount of $1.25 million, the LTV is 21% based on the appraised value. 

The use of funds is outlined above and the preliminary budget provided by Temple is available as a document that can be reviewed.

Property Collateral

Property Address 73-251 Hovley Lane West, Palm Desert, CA 
Property Status: Owned
Property Value: $5,845,000 - Appraisal

 

 “THE RETURN OF FUNDS OF THE PURCHASER IS DEPENDENT UPON THE FINANCIAL CONDITION OF THE ORGANIZATION.”

“RECEIPT OF NOTICE OF EXEMPTION BY THE WASHINGTON ADMINISTRATOR OF SECURITIES DOES NOT SIGNIFY THAT THE ADMINISTRATOR HAS APPROVED OR RECOMMENDED THESE SECURITIES, NOR HAS THE ADMINISTRATOR PASSED UPON THE OFFERING. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.”

“ANY PROSPECTIVE PURCHASER IS ENTITLED TO REVIEW FINANCIAL STATEMENTS OF THE ISSUER WHICH SHALL BE FURNISHED UPON REQUEST.”

Repayment Strategy

The monthly interest payment for the loan from Temple Sinai of the Desert LLC, will be paid out of current operating revenues. Due to the reduced interest rate (3.5% versus 7.0%), the payment will be approximately $2,800 less than the current monthly interest payment on the loan to the Berger Foundation. The savings on the monthly payments will be used in part to begin paying down principal on the loan, as well as to provide increased stability to the current operating budget, ensuring a balanced budget at year-end.   

In addition, with increased membership and a more stable operating budget, we will be able to make some necessary capital improvements leading to increased rental income from our current renter, Calvary Church. We will use a portion of this increased revenue to further reduce our loan principal.

In alignment with the 5-year Temple Sinai Strategic Plan, a traditional capital campaign will be launched no later than 2018 to ensure repayment of the Semble loan to all our investors by the conclusion of the loan term in late 2020. If we are unsuccessful in raising sufficient capital to pay off the loan in full, we will look at all possible options and make the best decision for the future of Temple Sinai.

Risk Questionairre

Are there any outstanding or pending litigations against the Borrower?  No

Are there any material changes in revenue sources that should be disclosed or are not represented in the financial information provided?  No

Are there any material changes in operating expenses that should be disclosed or are not represented in the financial information provided? No

Are there any material changes in the Borrower’s leadership (Compensated or non-compensated leaders) that should be disclosed?  No

Are there any employment issues or claims outstanding or pending?  No

Are there any environmental issues on any of the real estate related to the Borrower loan? No

Has the Borrower been in default in any obligations in the past 3 years?  No

Has any of the key leadership of the Borrower (compensated or non-compensated) been involved in any pending or current litigations or judgments that could adversely impact their ability to serve the Borrower?  No

Has any of the key leadership of the Borrower (compensated or non-compensated) ever been indicted or convicted of a felony?  No

Frequently Asked Questions

QUESTION: What is the next step?

ANSWER: At the point that you are ready to participate, select "Get Started" and follow the simple steps. It takes about 2 minutes to enter the basic information, including your email address, amount you want to invest, and the rate of return you would like to receive. Choosing to take this first step is not a binding commitment.

QUESTION: What if I want to get my money out before the end of the investment term?

ANSWER: If you plan on needing access to the funds prior to the maturity of the investment, it is encouraged that you not invest since there are currently no well-defined secondary markets for the investment. In the case of hardship, best efforts will be made to see if someone else would like to take your position, although there are no guarantees.

QUESTION: Can I make an investment using retirement funds?

ANSWER: Yes, but you are not typically able to direct funds from your current employer 401(k) or 403(b). If the instructions online are not clear or if you have questions, please contact Semble.

QUESTION: Are there costs in using retirement account (i.e. IRA) to invest?

ANSWER: Yes, all custodians will charge a fee for holding this type of investment because they are not compensated through the normal fees they realize in holding traditional investments (stocks, bonds, mutual funds, etc.). The fee varies based on the custodian. The IRA custodian that is the preferred provider through Semble has a flat annual cost of $100/yr. This cost should be taken into consideration when making an investment. There are no costs to invest using non tax-deferred funds since there is no need for custodial involvement.

QUESTION: Can I share this opportunity with others I know that support the borrowing organization?

ANSWER: Yes! If you know friends and family that are socially minded investors who might like to realize community impact with their investment dollars, you can forward this link to them.

Ready to commit to invest in the loan needs of Temple Sinai of Palm Desert?

Click the blue Get Started button to enter your commitment. This is a non-binding commitment and Semble investor support is always available if you have any questions or need assistance.