This 19-time repeat Seattle Funding Group client had acquired two well-located commercial properties in the vibrant, downtown village area of Petaluma. While still completing the strategic plans to establish and open a new restaurant, and converting the remainder to creative office uses, the existing bridge loan matured. That bridge had allowed for a higher leverage level going in, but the Note Rate, loan costs and required extension fee were likewise quite high.
A call was placed to SFG to secure responsive bridge (re)financing at far more sustainable leverage levels and loan costs. There are times when higher leverage levels are necessary, but most often, they are associated with a correspondingly high cost of funds.
- Closed on time
- Lowered the Note Rate by 44%
- Reduced the effective monthly Pay Rate by over 50% (dollar for dollar and before factoring in the lowered leverage level)
- Total loan fee = Less than the required extension cost for the maturing obligation
Yes, the sponsor had to write a check to lower the leverage level, but when the velocity slows, smart real estate investors and entrepreneurs rethink their plan…and call Seattle Funding Group.
In the last 30-days, SFG has assisted clients with financing debt restructure or acquisition opportunities in the bustling downtown villages of La Mesa (San Diego County), Petaluma (Sonoma County) and The City of Orange (Orange County)…who says retail is dead?!