$5.2M Bridge Loan: 17-Story Office Tower Redevelopment
Baltimore, MD — A matured loan on a historic downtown high-rise threatened to derail a fully permitted mixed-use hotel conversion. Helvetica refinanced the debt at 65% LTV on an interest-only bridge, giving the borrower up to 24 months to close construction financing or sell the project shovel-ready — on their own terms.
The Borrower's Problem
The borrower, a single-purpose LLC backed by an experienced local hospitality and real estate operator, had spent years positioning a 1929-vintage downtown office tower for its highest and best use: a 150-room mixed-use redevelopment anchored by a nationally flagged hotel. Plans, budgets and permits were in place, and the hotel brand had committed $1.5M in key money.
The obstacle was the existing loan. It had matured, and with the building intentionally leased month-to-month at roughly 40% occupancy to clear the way for redevelopment, conventional lenders saw a vacancy story rather than a conversion story. A maturity default at that stage would have jeopardized the permits, the brand commitment and years of predevelopment work.
The Helvetica Solution
Helvetica underwrote the real collateral and the real exit rather than the trailing rent roll. A $5,200,000 first mortgage at 65% of the $8,000,000 as-is appraised value paid off the matured debt, structured interest-only over a 12-month term with two six-month extension options for up to 24 months of runway.
Credit support came from the guarantor's substantial reported net worth and cash flow from a separate downtown hotel in their portfolio, which comfortably serviced the bridge payment. At 40% occupancy the building itself operated at breakeven before debt service, so carrying costs did not depend on lease-up.
Benefit to the Borrower
- Matured loan retired quickly — no default, no lender pressure
- Permits, plans and the hotel brand commitment preserved intact
- Interest-only payments supported by outside portfolio cash flow
- Up to 24 months to secure the $21M construction loan
- Alternate exit retained: sell the project shovel-ready at the borrower's timing
- Roughly $2.8M of equity in the asset preserved at 65% LTV
Deal Highlights
- 17-story, 138,757 SF Class B tower across from the downtown courthouse
- Fully permitted conversion to a 150-room hotel, office and retail project
- $35M total redevelopment budget; ~$55M projected value on completion
- Ground-floor national retail tenants in place during the bridge period
- Interest-only structure with construction-loan or sale exit
Matured loan on a redevelopment project?
Helvetica funds bridge and predevelopment loans from $300K–$10M+ on investment and business-purpose real estate, typically closing in 3–10 days following receipt of all requested documentation.
