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%.