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.