Avatar Provides Bridge Loan on NorCal Jack in the Box Properties

Avatar Financial Group LLC has provided a $5.1-million bridge loan secured by two freestanding, net-leased Jack in the Box restaurants in Redding and Grass Valley. The first-lien loan was originated at approximately 60% loan-to-value and with a two-year term.

The sponsor’s previous first-lien loan had passed its maturity date while remaining current on its required payments. Avatar’s financing retired that loan and consolidated the existing subordinate liens into a single junior position. The sponsor plans to market the properties for sale or obtain permanent financing before it matures.

“This was a loan-maturity problem, not a property-performance problem,” said T.R. Hazelrigg IV, Avatar’s president and co-founder. “Two restaurants were open and paying rent on leases that run well into the 2030s. Nothing about the real estate had changed. The complication sat above the assets, in a capital stack that had gotten more complicated than the properties themselves.”

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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