CRE Bridge Loan for Medical Office Building in El Paso, Texas

Sherpa Capital, a private lender, funded a $1,650,000 1st lien position bridge loan for the acquisition of a  medical office building situated in the main medical district of El Paso, TX. We funded 82.50% of the $2,000,000 purchase price while the Borrower contributed 17.50% cash at closing. Our Client was a local radiologist aiming to expand their medical practice and transition to a larger facility. They are high income earners with a clear exit strategy, so we felt comfortable going much higher on the leverage than we normally do, and we charged a healthy rate/fee to compensate for our additional risk. We also felt the purchase price was around $600,000 below market value. The purchase contract gave a short window of time to close. They required a quick closing before year-end to capitalize on favorable tax planning (accelerated depreciation). Conventional financing was unable to meet the tight deadline, but Sherpa provided financing within just 2 weeks. The Borrower’s exit strategy is to refinance with a conventional lender within a few months. They already have a term sheet in hand. The subject property was in good condition and vacant at closing. The loan term was set at 6 months. This CRE bridge loan was funded in December 2023.