A repeat borrower owns a medical office building in Bellevue in the vibrant Spring District. Changes in zoning are expected to occur at the end of 2026. The changes in zoning will have a net positive increase in value of the property by allowing residential use and increased density.
The existing note on the property was maturing, and the property was not fully stabilized and had short term leases. These short-term leases give flexibility for future developers but impedes todays refinance options. Seattle Funding Group was able to see beyond the short-term leases and higher than market vacancies and provide quick bridge financing. Seattle Funding Group helped the client while still maintaining appropriate leverage of about 60%.
Our seasoned borrower was able to “Buy Time” to hopefully actualize a robust return well above the cost of funds.
Why we like the deal
- Location
- Repeat Client
- Defined, calculated exit strategy even if zoning changes are delayed or adjusted.
- Strong liquidity
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