Florida & Gulf Coast + Central Florida + Finance | April 6, 2023

Red Oak Provides Bridge Loan on Space Coast Industrial

Red Oak Capital Holdings, a Grand Rapids, MI-based commercial real estate finance company, has provided $10.18 million in bridge financing for a single-tenant manufacturing facility along Florida’s Space Coast. Sponsor Reich Brothers I, LLC used the funds to acquire the 80,107-square-foot property, located at 4401 Fortune Pl. in Melbourne, and prepare the building for its new tenant, Jeff Bezos-owned Blue Origin.

“Some would have viewed this transaction as merely a small industrial property in a relatively small market, but we recognized a significant opportunity to put our capital to work with established owner/operators,” said Red Oak’s CEO, Gary Bechtel. “This sponsor not only offered significant real estate expertise and a well-located property, but also came to the closing table with a lease in place, secured by a strong tenant in a booming industry.”

Underwritten under Red Oak’s CorePlus Bridge Program, the interest-only loan carries an 8.50% note rate and a 24-month initial term with two six-month renewal options. The finance reflects a loan to “as stabilized” value of 67.39%.

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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 13-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 15-20 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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