Landmark Capital is pleased to announce the successful closing of a $13.4 million bridge loan for the acquisition and lease-up of a 91,154 SF industrial building located in National City, CA. Proceeds will be used to acquire the property, to perform modest capital upgrades, to pay TIs/LCs, and to stabilize the property.
Challenge of the assignment:
- Sponsor was acquiring a vacant building
- The base case business plan was predicated on a securing a tenant for the entire property pre-closing, but the ability to do so would not be known until just prior to closing.
- Landmark had to structure a loan with the optionality to fund with or without a tenant in tow.
Under the tenant in tow scenario, the sponsor wanted maximum proceeds in order to reduce the equity requirement
Landmark identified a bridge lender who would provide the optionality to close with or without a tenant in tow at attractive leverage points on both scenarios. Ultimately the lease was signed pre-funding and the lender provided 90% LTC. This greatly reduced the sponsor’s JV equity requirement and allowed the sponsor to capture a greater share of the value created by securing a tenant pre-closing.