News

Landmark Capital Raises $13,400,000 of Bridge Debt

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

Solution:

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.