$2.6M BRIDGE LOAN APPROVED FOR INDUSTRIAL BUILDING IN ONTARIO, CALIF.
Freedom Financial Funds funded a $2.6 million loan for the acquisition of a leased 24,700 square foot industrial building in Ontario, California, located just south of the Ontario airport and north of the 60 freeway. The loan totaled 58.8% of the acquisition cost of the property.
The subject building was an owner/user building until the owner sold his company to a third party. That company remains in the building with a lease that runs through June 2023. The tenant is a successful manufacturer of high-performance automotive parts. Its product requires substantial heavy equipment that is not easily relocated.
The borrower is a client with whom Freedom has done six previous loans. Although the borrower has set up a fund to acquire, hold and eventually sell buildings, the loan came to Freedom because the fund was still in the initial fundraising stage and was insufficiently capitalized to close an approved life insurance company loan. Because time was of the essence, the client came to Freedom to ensure the purchase was completed.
At the outset, the client asked Freedom for a 2nd trust deed loan, but Freedom found that it could replace the 1st and provide all funds needed to close the transaction for less and complication than a structure using a 1st and 2nd trust deed combined. This strategy simplified the transaction and saved the borrower substantial legal expenses, while averting the chance that the holder of the 1st trust deed would have denied the 2nd trust deed loan.
Several hallmarks of Freedom’s service are illuminated in this transaction: 1) time was short and Freedom delivered; 2) Freedom places a high value on relationships; and 2) Freedom has the ability to deliver unparalleled structural creativity and certainty of execution.