Fident Capital secured a $4.0MM cash out term loan for a multi-tenant, owner-user, office/industrial property located in San Diego’s Mira Mesa submarket. A regional bank provided the non-recourse financing. The close repatriated a significant portion of the borrower’s equity investment into the property.
The client originally sourced an off-market office acquisition and converted the Class C asset from an office and warehouse shell to Class-B creative office and biolab space. The location became the client company’s headquarters with the remaining space leased to a national biotech tenant.
Challenges to the financing included the chunky tenant mix, the owner-user occupying 60% of the space, disparate lease term expirations, and below market rents for the biotech tenant, which enticed their extensive T.I. buildout.
Fident procured a lender that could meet the client’s need for non-recourse, cash-out, quick close financing, with an open prepay. The lender understood the borrower’s business plan, ownership structure, strength of the location, and deep value-add that had taken place. The negotiated loan provided almost $1MM of cash-out and with a swap execution fixed for 10 years at a rate of 3.96%.