$1.7M Cash-Out Refinance: Los Angeles Mixed-Use Retail and Apartments
Los Angeles, CA: The note on a two-story retail and apartment building was due in 30 days. Helvetica refinanced it with a $1.7 million, 24-month bridge at 64% LTV, lowered the rate, and added cash for improvements.
The Borrower's Problem
The owner's existing note came due in 30 days. He needed to refinance fast, wanted a lower rate, and needed cash to improve the building.
The building is older, and its income covered debt service at only about 1.0x. That made a quick bank refinance unlikely.
The Helvetica Solution
Helvetica funded a $1.7 million first-mortgage refinance against a $2.65 million as-is value, a 64% LTV. The loan is interest-only for 24 months.
Four months of interest reserves were held in escrow at closing. That cushion offset the thin coverage while the owner prepared to sell.
Benefit to the Borrower
- Maturing note paid off within its 30-day window
- A lower rate than the note it replaced
- Cash out for property improvements
- Interest-only payments and a funded reserve during the sale period
Deal Highlights
- $1,700,000 first-mortgage cash-out refinance
- 64% LTV against a $2.65 million as-is value
- About $158,000 a year in property income before debt service
- Walking distance to the Sunset and Vermont Metro station, with about 61,000 households within one mile
- Planned exit: sale in 8 to 12 months; listed at $3.5 million with offers in hand at underwriting
Is your note coming due before you can sell?
Helvetica funds bridge and structured loans from $300K–$10M+, typically closing in 3–10 days following receipt of all requested documentation.
