$1.47M Auction Purchase: Bank-Owned Office Building in Cary

The Borrower's Problem

The building was bank owned and selling through an online auction platform. The distressed sale priced the asset well below its value, but the auction format demanded certainty of funds on a fixed timeline. A conventional lender would not move at auction speed on an unstabilized building.

The Helvetica Solution

Helvetica funded a $1,467,000 first mortgage at 65% of the $2,257,500 purchase price, with a 12-month interest-only term. A current appraisal valued the property at $3,760,000, placing the loan near 39% of appraised value, and projected $6,420,000 once fully leased.

The collateral included the 33,378 SF building on its 5.0-acre parcel plus a 7.67-acre adjacent land parcel. The structure carried two 6-month extension options, for up to 24 months of runway to lease up and reposition.

Benefit to the Borrower

• Certainty of funds to win a distressed auction below market value.
• 65% of the purchase price funded, near 39% of the current appraised value.
• Interest-only payments while the building was leased up and repositioned.
• Two 6-month extension options protected the stabilization timeline.
• The adjacent land parcel offered a second exit: a sale could retire the loan in full.

Deal Highlights

• $1,467,000 purchase bridge; first-mortgage security
• 33,378 SF office building on 5.0 acres, plus a 7.67-acre adjacent land parcel
• $2,257,500 purchase price; 65% loan to purchase price
• $3,760,000 current appraisal; $6,420,000 prospective value fully leased
• Research Triangle location, 12 miles from downtown Raleigh
• 12-month interest-only term with two 6-month extension options
• Planned exit: lease up, reposition, and refinance with a conventional lender