New Lease with Primary Tenant Adds Immediate Value at Closing

A $16.1 million bridge loan was recently secured for the acquisition and renovation of a multi-building flex property located at 10965-10995 Via Frontera in San Diego. The non-recourse bridge financing was arranged for the borrower through a regional bank. The property will undergo substantial improvements.

Aaron Beck, managing director of Northmarq’s San Diego regional office, secured the loan.

“This was a sale-leaseback transaction involving a new lease with the primary tenant, which added immediate value to the asset at closing. The floating-rate bridge financing provides the borrower with a majority of the capital for the exterior renovations and tenant improvements to satisfy the business plan,” said Beck. “The loan was structured with interest-only payments at an attractive rate, minimal prepayment penalty and extension options.”