$1M Purchase Bridge: Kearny Mesa Light Industrial

The Borrower's Problem

The owner planned to acquire a freestanding industrial building with 4 suites configured for 3 tenants. Existing leases generated $6,000 per month. A signed commitment for additional space offered another $11,666 per month, but the proposed tenant's medical cannabis use made banks unwilling to finance the acquisition.

The business plan also required a proposed zoning change from IL-2 to IL-3 to accommodate the intended use. The purchase needed financing that could consider the property, existing rental income, and the borrower's prior payment history while that plan progressed.

The Helvetica Solution

Helvetica structured a $1,000,000 senior loan secured by the 8,132 SF building on a 19,232 SF site. The borrower had completed more than a dozen prior Helvetica loans with payments made as agreed. The financing used a 120-month amortization schedule with the balance due after 60 months, rather than an interest-only structure.

The investment summary reported a $1,554,000 purchase price and a $1,450,000 broker opinion of value. The intended exit combined partial principal repayment through amortization with a later conventional refinance.

*The transaction record reports 65% LTV. The original summary contains conflicting figures: 65% in its headline, 60% of purchase in its table, and 69% against the broker opinion of value. These are reported source figures, not a single reconciled valuation.

Benefit to the Borrower

• $1,000,000 in purchase financing for an acquisition banks would not fund because of the proposed cannabis-related tenant
• A 60-month maturity supporting the planned lease-up and refinancing process
• Principal repayment through a 120-month amortization schedule
• Underwriting that considered more than a dozen prior Helvetica loans and existing rent of $6,000 per month

Deal Highlights

• San Diego loan 4608-16: $1,000,000 senior purchase financing
• 8,132 SF light industrial building; 19,232 SF site
• 4 suites configured for 3 tenants
• $6,000 monthly in-place rent and a signed commitment for another $11,666 per month
• Proposed cannabis-related occupancy and zoning change, not confirmed approvals
• 60-month maturity; payments amortized over 120 months
• Planned exit: amortization followed by conventional refinancing; the summary does not report a completed exit