$1.45M Refinance Bridge: Tucson Multi-Tenant Light Industrial
Tucson, AZ: A 10-year bank loan came due four months after the building's largest tenant left. Helvetica funded a $1,450,000 bridge at about 60% LTV so the owner could re-lease the space and then refinance with a bank.
The Borrower's Problem
The owner bought the building more than 12 years earlier and financed it with a 10-year bank loan in 2006. In March 2016, a tenant that had leased 51% of the building for 21 years moved out. Four months later the bank loan came due. With the building 49% occupied, a conventional refinance was off the table.
The Helvetica Solution
Helvetica funded a $1,450,000 first-mortgage bridge for 12 months, interest-only. The loan is 60.42% of the $2.4 million value on the brochure cover; against the $2.27 million as-is appraisal ($57 per SF), it is about 64%.
The owner is a repeat borrower who had repaid three earlier Helvetica loans in full.
Benefit to the Borrower
- Maturing bank loan paid off without a forced sale
- Financing on a half-vacant building that banks would not refinance
- Interest-only payments while the vacant space is leased
- A clear path back to a conventional bank loan once stabilized
Deal Highlights
- $1,450,000 first-mortgage refinance bridge, 12 months
- Two tenants in place at about $0.54 per SF, in line with market
- Vacant space marketed at $0.56 per SF by a professional manager
- I-10 freeway visibility to over 175,000 vehicles per day, 6 miles from downtown Tucson
- Planned exit: conventional refinance after lease-up
Did a big tenant leave right before your loan came due?
Helvetica funds bridge and structured loans from $300K–$10M+, typically closing in 3–10 days following receipt of all requested documentation.
