Funding Purpose
Tauro was engaged to place a bridge loan for the recapitalization in El Segundo, CA.
Property Description
The single tenant industrial property is located near LAX where there is currently a shortage of adequate industrial properties.
Sponsors
The sponsor inherited 50% of this asset and planned to used the bridge loan to buy out the other owner and make improvements to the property.
Challenges
- Property ownership divided between prior owner’s children.
- Current primary owner not well versed in industrial real estate.
Solutions
- Bridge funding secured through private bridge lender.
- Sponsor able to take full ownership and start making capital improvements.
Funding
- Funding Loan Amount (LVT): 65%
- interest Rate: 9%
- Pay Rate: 7.5%
- Term: 1 year
- Recourse: Carve Outs
- Interest Only: 12 months
