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Avatar provides $5.1 million bridge loan for Jack in the Box sites
The first-lien bridge loan at about 60% loan-to-value is set to run two years, with plans to refinance into permanent financing or sell before maturity.
Avatar Financial Group LLC provided a $5.1 million bridge loan secured by two freestanding, net-leased Jack in the Box restaurants in Redding and Grass Valley, according to ConnectCRE.
The first-lien loan was originated at approximately 60% loan-to-value and carries a two-year term. The sponsor’s prior first-lien loan had already passed its maturity date, while still meeting required payments.
ConnectCRE reports the new financing retired the earlier loan and consolidated existing subordinate liens into a single junior position in the capital stack. The sponsor intends to market the properties for sale or obtain permanent financing before the bridge loan matures.
Avatar president and co-founder T.R. Hazelrigg IV said the issue was a loan-maturity problem rather than property performance, noting both restaurants are open and paying rent under leases that run well into the 2030s. He added that the complication was the structure above the assets, with a capital stack that had become more complex over time.