San Diego Bridge Lenders for Commercial Real Estate

RRA Capital, a direct CRE private lending firm, funded a $9.2M non-recourse bridge loan for the purchase of a commercial mixed-use property in Solana Beach, San Diego County. The subject property is a 23,692 square foot, three-story, multi-tenant office development with ground floor retail. It is situated on a 0.84-acre site and features 79 on-site garage parking spaces (3.33/1,000sf GLA). It was 95% leased with a tenant base consists of 20 different tenants with a majority having been in the property for over 10 years. 16 of the current tenants are on month-to-month leases and the business plan includes raising these rents to market, extending lease terms, and leasing spaces at market terms as leases roll. The loan provided acquisition funding as well as follow-on proceeds to fund capital improvements and leasing costs. The sponsor plans to complete most of the improvements within the first two years including HVAC, elevators, windows, and upgrades to the existing terrace. The follow-on proceeds also include a spec budget to white box suites for incoming tenants. RRA Capital provided a $9,180,060 non-recourse, 36-month interest-only loan, with two, 12-month extension options. In addition to the capital improvements and leasing costs holdback facility, the loan also includes reserves to cover operating costs prior to stabilization. This bridge loan was funded in April 2021.

Archway Fund, a direct CRE private lender, provided a $4,300,000 non-recourse bridge loan for the purchase of an office building in Carlsbad, San Diego County. The Sponsor was using 1031 exchange proceeds and needed a quick closing for the acquisition. Archway funded 72% of the purchase price, and the 1031 contribution was 28%. The property was 100% occupied but had short-term leases. Archway was able to get comfortable with this by building in a $140,000 interest reserve into the loan. The exit strategy will be to refinance once the property is stabilized with longer-term leases. The loan term was 12 months. Interest rate was 8.75% Interest Only fixed. We charged an origination fee of 2 points. This bridge loan was funded in January 2020.

In September 2018, Archway Fund provided a $6.7M bridge loan secured by an industrial property which consists of two buildings located in San Diego, CA. The sponsor plans to use proceeds to facilitate the acquisition and provide renovation funds for improvements. The exit strategy is to sell one of the buildings and refinance the other to repay the proposed loan. We were able to fund fast to meet the sponsor’s closing deadline. The interest rate was 8.75% fixed for a term of 18 months. The loan-to-value was 70%, and the sponsor was not required to personally guaranty the loan.

1st Trust Deed refinance bridge loan for two medical office properties in Vista, San Diego. The subject property consists of two medical office buildings comprised of 23,800 square feet and is situated on a 66,700 square foot lot with significant parking. The property was appraised this month for $3,750,000, giving the Wilshire Quinn Income Fund a total loan-to-value of 59 percent on the transaction. We also cross collateralized an additional commercial property in National City. This bridge loan was funded in September 2017.