Foreclosure Bailout Bridge Loan for Los Angeles Retail Property

Funded by Newport Commercial Capital

4,300,000

Deal Details

Private Loan Type

Refinance

Approx. Funding Date

10/30/2020

Property Type
Retail
Property City

Los Angeles

Property State

CA

Deal Summary

In October 2020, Newport Commercial Capital provided a bridge loan in the amount of $4,300,000 secured by retail property in Los Angeles. The property had two mortgages and was in default with one of the previous lenders. A new partner joined the ownership group and used his own cash to pay off the 2nd mortgage. He then turned to NCC to refinance the 1st mortgage and save the property from foreclosure. We ordered an appraisal, and the value came it at around $8,775,000. So our loan-to-value was only 49%. The property consists of 8 retail units. 6 were occupied and the other 2 were undergoing tenant improvements but had leases in place. The property also consists of an adjacent vacant lot, and the owners plan to build a 40,000 square foot storage facility. Some of the proceeds from our bridge loan were to be used for the soft costs, and we may end up providing the construction loan next year.

Funded By

Newport Commercial Capital

Easy, reliable, on-time funding that you can count on.

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