Los Angeles, CA
RRA Capital, a direct private lending firm, funded a $6,138,500 non-recourse bridge loan secured by two commercial lots in Los Angeles, CA. The loan will provide funding to refinance seller carryback financing as well as follow-on proceeds to fund leasing costs. The term is 24-months with one, 6-month extension option followed by one, 4-month option. The loan was structured to also include a sizable interest reserve to cover operating costs prior to rent commencement. Pad ‘A’ is a well-located 36,374 square foot parcel and is the site for a proposed 4,088 square foot 7-Eleven gas station and convenience store. In August, 7-Eleven signed a 20-year ground lease with multiple extension options that will extend through January 2057. The construction of the proposed building will be performed by the future tenant. Pad ‘B’ is an equally well-located 15,445 square foot parcel and is the site for a proposed 900 square foot quick-serve restaurant with drive-thru. The sponsor has an existing LOI for a 20-year ground lease with a multinational coffee chain to develop the site. If this tenant does not enter into a formal lease, the sponsor will market the site to other quick-serve restaurant users, and the loan includes a rate reduction provision upon lease execution of the Pad ‘B’ tenant. This bridge loan was funded in November 2020.