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Deal Details
Private Loan Type
Purchase
Approx. Funding Date
05/01/2016
Property Type
Property City
Flint
Property State
MI
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$790,000
Loan-to-Purchase Price
75%
Borrower's Contribution to Purchase
25%
Source of Borrower's Contribution
Cash
Location Type
Suburban
Property Condition
Good
Occupancy at Closing
Partially Occupied
Number of Units
266
Building Square Footage
35,000
Borrower's Plan
Lease Property
Exit Strategy
Refinance
Borrower Credit Rating
Good
Deal Summary
Sherpa Capital Group, a direct private lending firm based in Chicago, funded a $600,000 bridge loan for the purchase of a 266-unit self-storage facility located in Flint, Michigan near suburban Detroit. The estimated purchase price was $790,000. Sherpa Capital funded 75% of the purchase in 1st lien position, and the Borrower contributed a 25% cash down payment. The property was approximately 35,000 square feet. It was in good condition and was already partially rented at closing. The Borrower had good credit and owned a portfolio of self-storage properties. They needed to close quickly as the property was sold out of a bankruptcy. The trustee wanted a quick sale, and the Buyer wanted to take advantage of the substantial discount offered. Sherpa Capital was able to provide financing within 2 weeks. The Borrower had significant cash equity into the transaction. Their exit strategy was to stabilize the property with some improvements and refinance with an SBA lender. The loan term was set at 12 months. This bridge loan was funded in May 2016.
Funded By
Sherpa Capital Group
Entrepreneurial Private Lender for All Types of Commercial Properties