$625K Performing Loan Purchase: San Diego Industrial
San Diego, CA: A property owner had a performing $625,000 purchase loan on a 5,242 SF industrial building. The existing lender sought liquidity for new loans. The transaction was structured as a purchase of that loan at par, rather than a new advance to the borrower, with an 18-month interest-only term and 39% reported LTV.
The Borrower's Problem
The borrower purchased the industrial property for $1.25 million in January 2023 using a $625,000 first-mortgage loan. All payments had been made as agreed. The lender wanted to sell the performing loan to free capital for other transactions, while the borrower planned a conventional refinance.
This was a lender-liquidity transaction, not a reported borrower default or request for additional cash. The existing 18-month loan provided the period in which the borrower intended to arrange permanent financing.
The Helvetica Solution
The transaction called for acquiring the existing $625,000 commercial loan at par. The first mortgage was secured by a 5,242 SF industrial building on a 7,466 SF site. A November 2021 appraisal reported a $1.6 million market value, supporting the reported 39% LTV. The original financing represented 50% of the $1.25 million purchase cost.
Built in 2000, the property included approximately 832 SF of office space and 4,410 SF of warehouse space. A new single tenant had signed a triple-net lease for 100% of the building at $7,500 per month. The loan carried interest-only payments and a stated maturity of August 1, 2024.
The borrower's planned exit was a conventional refinance. The source summary describes the loan-purchase structure and intended exit; it does not report a completed refinance or confirm the acquisition's closing.
Benefit to the Borrower
- A structure focused on transferring the existing $625,000 loan, not requiring a new property purchase
- An 18-month interest-only loan supporting the planned transition to conventional financing
- Underwriting supported by a record of payments made as agreed
- Property income backed by a signed lease for the full 5,242 SF at $7,500 per month
Deal Highlights
- $625,000 performing commercial loan purchase at par; first-mortgage security
- 39% reported LTV against a November 2021 appraisal of $1.6 million
- Original loan-to-cost: 50% of the $1.25 million property purchase price
- 5,242 SF industrial building on a 7,466 SF site in San Diego, CA
- Single-tenant triple-net lease at $7,500 per month
- 18-month interest-only term; stated maturity August 1, 2024
- Planned borrower exit: refinance into a conventional loan
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Helvetica funds bridge and structured loans from $300K–$10M+, typically closing in 3–10 days following receipt of all requested documentation.
