San Diego, CA
RRA Capital, a direct CRE private lending firm, funded a $9.2M non-recourse bridge loan for the purchase of a commercial mixed-use property in Solana Beach, San Diego County. The subject property is a 23,692 square foot, three-story, multi-tenant office development with ground floor retail. It is situated on a 0.84-acre site and features 79 on-site garage parking spaces (3.33/1,000sf GLA). It was 95% leased with a tenant base consists of 20 different tenants with a majority having been in the property for over 10 years. 16 of the current tenants are on month-to-month leases and the business plan includes raising these rents to market, extending lease terms, and leasing spaces at market terms as leases roll. The loan provided acquisition funding as well as follow-on proceeds to fund capital improvements and leasing costs. The sponsor plans to complete most of the improvements within the first two years including HVAC, elevators, windows, and upgrades to the existing terrace. The follow-on proceeds also include a spec budget to white box suites for incoming tenants. RRA Capital provided a $9,180,060 non-recourse, 36-month interest-only loan, with two, 12-month extension options. In addition to the capital improvements and leasing costs holdback facility, the loan also includes reserves to cover operating costs prior to stabilization. This bridge loan was funded in April 2021.