Bridge Loan for 20-Unit Retail Property Acquisition in San Diego

First Bridge Lending, a private mortgage lender, provided a $5,775,000 bridge loan to secure the acquisition of a 20-unit retail property in the Kearny Mesa neighborhood of San Diego, CA. We funded 55% of the $10,500,000 purchase price in 1st lien position, and the Borrower contributed 45% cash at closing. The Borrower was a repeat client of ours and was acquiring the property with below-market rents across the rent roll. They needed a bridge loan to provide time to work leases to market rates. The property will also undergo a variety of improvements as part of an overall makeover, but we are not funding the renovations. The Borrower will spend around $1,050,000 of their own cash, and we anticipate our loan will be approximately 40% of the completed value. Upon completion, the property will underwrite to conventional loan metrics. The subject property was in good condition and tenant-occupied at closing. The Borrower plans to continue rental and eventually refinance as an exit strategy. The loan term was set at 24 months. This CRE bridge loan was funded in July 2022.