We had seen this asset come across our desk multiple times it was bound to end up here at ALB for financing. One of our VIP brokers had a buyer he was working with that he referred over to us to get financed for this purchase. The buyers were in a 1031 exchange.
The rents collected on the property were low and as a result was requiring an extremely large downpayment, more funds than the borrowers had available for this purchase, but they really wanted to take down the asset.
ALB structured a bridge loan at 75% LTV for the buyers. This allowed them to purchase the building and then gives them a year to stabilize the rents to market and make property improvements. We will then refinance them out afterwards placing them into conventional bank financing.