Fident Capital secured a $16.5M bridge loan and a $4.74M mezzanine loan for the acquisition, rehabilitation, and adaptive reuse of the 67,000 square foot vacant office building in San Diego, CA. The asset was repositioned into an exclusive office condominium offering.
Challenges to financing included proving the vibrancy of for-sale office product in a market with few comparables, finding a senior lender who could advance adequate proceeds at a close expected to occur prior to receiving entitlements, and a borrower whose primary development experience was in the residential space.
The loans covered an 18 month term, each with a six-month extension options. The mezzanine loan was non-recourse with the exception of standard carve-outs. No presales were required by either lender. The borrower’s co-investment at close was 2.5% of project cost.