$1.3M Construction Takeout: Build-to-Suit NNN Retail
Los Banos, CA — A developer finished a build-to-suit drive-thru coffee store on a brand-new 10-year investment-grade lease, but the construction loan matured before the bank could underwrite permanent debt. Helvetica refinanced it at 45% LTV so the borrower kept the asset, the tenant, and the negotiating leverage.
The Borrower's Problem
The borrowers — two partners holding title as tenants in common through an approved national-brand development platform — had just completed a build-to-suit retail pad and delivered it to the tenant under a new 10-year lease. The construction loan used to fund the improvements was maturing, and the bank permanent takeout was still weeks of committee and third-party reports away.
A matured construction loan is a default risk regardless of how good the asset is. With a fresh appraisal at $2.9 million and a signed investment-grade lease in hand, the borrower needed a short-term lender who could underwrite the collateral and the exit quickly rather than restart the process.
The Helvetica Solution
Helvetica placed a $1,300,000 first mortgage — under 45% of the appraised value — to retire the maturing construction debt in full. The loan was written interest-only over an initial 6-month term with a single 6-month extension option available so long as the loan stayed in good standing, giving the borrower up to 12 months of certainty against a bank timeline he did not control.
Underwriting leaned on what mattered: a completed building, a national tenant in occupancy, excellent debt coverage, deep sponsor net worth, and a clearly documented conventional refinance in process. Credit scores in the good — not perfect — range were not an obstacle.
Benefit to the Borrower
- Maturing construction loan retired before it became a default
- Ownership of a newly stabilized NNN asset retained — no forced sale
- Interest-only payments kept carry low during the transition
- Built-in 6-month extension removed the pressure of a bank's timeline
- Sub-45% LTV preserved roughly $1.6M of equity in the property
- Borrower negotiated permanent bank financing from a position of strength
Deal Highlights
- Build-to-suit construction takeout
- New 10-year investment-grade lease
- Single-tenant net-leased retail outparcel
- Repeat borrower relationship
- Bridge to conventional refinance
Construction loan maturing before your bank takeout?
Helvetica funds bridge and construction takeout loans from $300K–$10M+ on investment and business-purpose real estate, typically closing in 3–10 days following receipt of all requested documentation.
