El Segundo, CA
Archway Fund provides a $6.8M refinance bridge loan secured by a mixed-use property located just outside the Smokey Hollow district of El Segundo, CA. The Sponsors are foreign nationals and were in a technical default with their previous lender. They required a quick close to avoid default interest. Archway was able to provide a 10-day close and get comfortable with a majority of the leases being month-to-month while building in an interest reserve to cover shortfalls. The loan-to-value was 65%. The majority of the subject property is a co-working office space which the owner operates. The property also has some smaller retail spaces which are leased to various tenants, including a liquor store, restaurant, salon and laundromat. The Sponsor plans to extend and season the leases, increase the NOI and refinance with a conventional lender once they are back on track. This commercial real estate bridge loan was funded in May 2019.