Purchase Bridge Loan for Shopping Center in Janesville, Wisconsin

Yieldi, a direct lender for investment properties nationwide, funded a $4,116,000 1st lien position bridge loan for the acquisition of a retail building in Janesville, Wisconsin. We funded 70% of the $5,880,000 purchase price, while the Borrower contributed 30% cash at closing. The Borrower had the property under contract, went through due diligence, had his bank lined up to close and then they backed out at the last minute. He had $1MM in non-refundable Earnest Money that was at risk. The Borrower needed a group that could step up and bridge the gap for him to find another bank to finance the deal at better terms. This 1-year bridge opportunity from Yieldi is a 100% occupied shopping center anchored by Office Max with +25 years of commitment to the site. The property features a diverse class of retail tenants spanning across various industries such as fitness, consumer staples, and healthcare, with 74% of income stemming from national tenants. In addition, the property has experienced favorable leasing traction with four new tenant additions with extensive lease terms and multiple renewal options inclusive of rate increases. The Property benefits from excellent traffic exposure with ±35,000 vehicles per day through the adjacent roads while being anchored by a long-term national credit tenant and shadow anchored by a national grocery chain with a recent 5-year term extension (Schnucks). The shopping center has $672,000 in net operating income and it has a good tenant mix with 74% of them being national brands. Yieldi closed this deal at a 12.5% interest rate with a 1-year term. This CRE purchase bridge loan was funded in June 2023.