Gladstone, MO

$3,400,000

Retail

Refinance

12/13/2019
Transaction by
Archway Fund
Archway Fund, a direct CRE private mortgage lender, provided a $3,400,000 non-recourse bridge loan secured by a strip retail center in Gladstone, Missouri. The Sponsor's loan had matured, and they required more funds in order to make improvement and complete the lease up of the property. At the time of funding, the occupancy rate was 55%. Archway was able to get comfortable with the vacancies by building an $800,000 interest reserve into the loan and a renovation budget for future tenant improvements as leases are signed. The exit strategy is to refinance once the property is stabilized. The loan term is 18 months with extension options. The interest rate was 9% Interest Only fixed. We charged an origination fee of 1.75 points. The LTV was 60%. As with almost all of our deals, the Sponsor did not have to personally guarantee the loan. This bridge loan was funded in December 2019.