$1.697M Purchase Bridge: 74,356 SF Light Industrial Building
Hickory, NC — An experienced Southeast operator was under contract to buy a vacant 74,356 SF industrial building at $2.55M against a $3.5M appraised value. Helvetica funded a $1,697,000 first mortgage at 48% LTV on an 18-month interest-only term so the buyer could close on the discounted basis and stabilize the asset at market rents.
The Borrower's Problem
The buyer — a seasoned commercial operator with a 19-asset portfolio across the Southeast — had negotiated a purchase price roughly $950,000 below appraised value. The catch was the building's condition on paper: it was vacant at the time of contract, with two leases not yet commenced and a letter of intent outstanding on a third unit.
A vacant building generates no in-place income, and banks underwrite to in-place income. Even with strong credit, substantial net worth and a clean pay history, conventional financing would have meant months of process and a likely decline — long enough to lose the contract and the discounted basis along with it.
The Helvetica Solution
Helvetica underwrote the collateral and the business plan instead of trailing rent rolls. A $1,697,000 senior first mortgage funded at 48.49% of the $3.5M value — a conservative loan against real equity — on an 18-month interest-only term, including a six-month extension option.
The low leverage and interest-only structure kept monthly carrying costs light while the borrower completed minor renovations, converted 12,800 SF of office to showroom space, and signed triple-net leases at market rents. Stabilized value at the market's prevailing cap rate supported a conventional refinance exit.
Benefit to the Borrower
- Closed on the discounted purchase price instead of losing the contract
- Roughly $950,000 of day-one equity captured at acquisition
- Vacancy underwritten as a business plan, not a disqualifier
- Interest-only payments minimized carrying costs during lease-up
- 18 months of runway, including a 6-month extension option
- All stabilization upside stayed with the ownership entity
Deal Highlights
- 74,356 SF two-story light industrial building on a 4.18-acre parcel
- $1.5M of recent capital improvements: roof, HVAC, asphalt
- Four dock doors; 12-foot warehouse clear height; four-unit configuration
- Purchased at $2.55M against a $3.5M appraised value
- Exit via conventional refinance after NNN lease-up
Buying a vacant building at a discount?
Helvetica funds acquisition and bridge loans from $300K–$10M+ on investment and business-purpose real estate, typically closing in 3–10 days following receipt of all requested documentation.
