CRE Bridge Loan for Industrial Vacant Land in Hebron, Kentucky

Sherpa Capital Group, a direct private lending firm based in Chicago, funded a $425,000 1st lien position bridge loan for the acquisition of industrial vacant land in Hebron, KY. We funded 65% of the $650,000 purchase price, while the Borrower contributed 35% cash at closing. The subject property is 21 acres of prime, vacant industrial land near the Cincinnati/Northern Kentucky International Airport (CVG). The Sponsor contacted Sherpa Capital Group, LLC because they had a short timeline to close the off-market deal. The property is situated within an established industrial park, well located outside of CVG airport where Amazon has invested $1.5 billion to open Amazon Air Hub to support their growing air cargo network. The Client needed to close quickly to take advantage of off-market pricing. They also had the land pre-sold to a regional trucking company. Conventional financing would not qualify for speculative land and could not close within the timeframe. Sherpa Capital Group LLC was able to complete diligence, site visit and provide financing within 2 weeks. The Borrower had excellent credit. Their exit strategy is to sell the land to the end user once the local plans and permits are approved. The interest rate was 13% and we charged 5% origination points. The loan term was set at 12 months. This CRE bridge loan was funded in February 2023.