Office Bridge Acquisition Loan – Oak Brook, Illinois
Overview:
Sherpa Capital Group stepped in with a fast, flexible bridge loan, allowing the buyer to acquire the property and begin stabilization efforts immediately. Our tailored financing structure ensured the borrower could transition to an SBA loan once renovations and tenant occupancy targets were met.
Outcome:
The loan closed successfully enabling the client to move forward with their plans converting a portion of the space for medical use while attracting new tenants to lease the remaining offices. The exit strategy includes refinancing with an SBA lender once the property reaches stability, providing long-term financing at favorable terms.
- Client: A local medical doctor and real estate investor seeking office space to expand his medical practice.
- Location: Oak Brook, IL.
- Asset: 27,498 SF office building on 3-acre parcel with 130 parking spaces.
- Purpose: Acquisition loan to redevelop the asset after failed efforts with previous ownership.
- Tight deadline: The borrower’s SBA lender was unable to close in time, requiring an interim financing solution to secure the property before it was lost to competing bidders.
- Traditional Lending Barriers: Due to the property’s operational and physical challenges, traditional banks were unable to execute financing within the required timeframe.
- Foreclosure History: The property was previously tied up in a failed development, leading to concerns about title clearance and financing.
- Value-Add Strategy: The borrower required capital to acquire and reposition the property, balancing medical office build-out with leasing efforts for additional tenants.
Sherpa Capital Group stepped in with a fast, flexible bridge loan, allowing the buyer to acquire the property and begin stabilization efforts immediately. Our tailored financing structure ensured the borrower could transition to an SBA loan once renovations and tenant occupancy targets were met.
Outcome:
The loan closed successfully enabling the client to move forward with their plans converting a portion of the space for medical use while attracting new tenants to lease the remaining offices. The exit strategy includes refinancing with an SBA lender once the property reaches stability, providing long-term financing at favorable terms.
