Bridge Loan for Retail Office Property in Pasadena, California

Avatar Financial Group, a direct CRE private lending firm, funded a $3.6MM bridge loan secured by a mixed-use commercial property in Pasadena, CA. The 25,257 square foot mixed-use building comprised of office and retail. A family matriarch owned the subject property since 1978 and passed away in 2015. The property is vested in a Trust, which states that the real estate can be liquidated five years after death. Avatar’s loan provided a partial interest reserve, funds to update the property, and set aside a TILC reserve that will be used to stabilize the property and maximize its value in preparation for a sale. We estimated the value to be around $8.1MM, so the loan-to-value for our senior mortgage was only 44%. The interest rate was 8.75%, and the loan term is 2 years. This CRE bridge loan was funded in August 2021