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Avatar Financial provides $4.75 million bridge loan for Santa Ana warehouse
The two-year first-lien loan, underwritten at about 60% loan-to-value, replaces an existing first mortgage and a junior loan that had already matured.
ConnectCRE reports that Avatar Financial Group LLC provided a $4.75-million bridge loan secured by a fully leased warehouse and distribution building in Santa Ana, California.
The two-year, first-lien financing was originated at approximately 60% loan-to-value and replaces two prior loans, including retiring the property’s existing first mortgage and a junior loan that had passed its maturity date.
ConnectCRE also notes that the tenant had already invested substantially in its build-out and that rent had commenced before the bridge loan closed. After roughly six months of rental income, the sponsor plans to obtain long-term financing and repay the loan.
Avatar’s president and co-founder, T.R. Hazelrigg IV, said that a lease just starting does not underwrite the same as one with a payment history, and that lenders typically wait for that history to form. He added that, at the 60% basis with the tenant’s own money already in the space, the decision was not difficult.