Cronheim Mortgage has secured a $10 million convertible bridge facility for two adjacent industrial properties totaling 267,000 square feet. The seven-year loan offers a two-year variable rate interest only period followed by a five-year fixed rate term loan.
After suffering a couple vacancies and with a short term remaining on the anchor tenant lease, the sponsor needed to recapitalize to secure funds to re-lease/reposition the property. He was also seeking the ability to earn out funds at stabilization to monetize some of the value creation. Cronheim was successful in structuring a debt facility that offers both an IO bridge period with fundings for tenant improvements, leasing commissions and capex followed by a sizable earn-out during an amortizing period.