$850K Refinance Bridge: Federal Way Retail Stabilization

The Borrower's Problem

The retail center was 71% occupied and needed improvements before the remaining space could be leased. The owner also needed to pay down existing debt, but limited liquidity made a conventional refinance difficult before stabilization.

The property generated $130,116 in reported annual gross income and approximately $90,000 in reported net income. The owner planned to improve the center, reach full occupancy, and sell to create liquidity.

The Helvetica Solution

Helvetica structured an $850,000 first-mortgage bridge against a reported $1.54 million appraisal. The 12-month, interest-only loan was sized at 55% LTV and included a six-month interest reserve at closing.

The structure gave the owner time and capital to reduce current debt and address deferred maintenance while leasing the remaining space. Two six-month extension options provided additional runway if the stabilization and sale took longer than the initial term.

Benefit to the Borrower

• $850,000 to reduce existing debt and fund property improvements
• Six months of payments held as an interest reserve
• Interest-only payments during the lease-up period
• Two six-month extension options for added sale flexibility

Deal Highlights

• $850,000 first-mortgage retail refinance bridge
• 55% LTV against a reported $1.54 million appraisal
• 71% occupancy at underwriting
• 32,165 SF site with approximately 400 feet of reported highway frontage
• Planned exit: improve, lease, and sell the property