Equity Cash-Out Bridge Loan for Industrial Property in Los Angeles, California

Wilshire Finance Partners, a direct portfolio lender, funded a $2,832,500 1st lien position equity cash-out bridge loan secured by an industrial building in Los Angeles, California. The property value was estimated at $5,150,000 so our loan-to-value was 55%. The Borrower was an established equipment manufacturer who needed funds to consolidate business debt and reposition his manufacturing & distribution operations from retail-oriented to commercial-oriented customers. We paid off the previous mortgage balance of $1,832,500 and provided $1,000,000 in equity cash out. The subject property was a well-maintained, well-located, 19,450-square-foot light industrial building built in the 1980s. Although the company’s financials had improved and it was demonstrating profitability, several quarters of losses made it ineligible for traditional financing. Wilshire’s portfolio bridge loan program gave the Borrower the ability to strengthen their balance sheet through debt consolidation and a capital infusion giving the Borrower additional runway to execute their business plan. The primary repayment strategy is permanent bank financing once the company’s cash flow has stabilized. The loan term was set at 24 months. This CRE bridge loan was funded in September 2023.