$3,200,000 SBA-504 Purchase Loan w/ Tenant Improvement Budget in Tustin, CA
+ 90% Loan-to-Value
+ SBA 504 Loan Execution
+ 1st TD: 10-yr fixed / 30-yr amortization
+ Interim TD: Floating Rate through construction
+ 12-months Interest Only for construction
+ 2nd TD: 25-yr fixed / 25-yr amortization
Sequoia Commercial Lending has closed the SBA 504 purchase for an office building to be converted to medical office in Tustin, CA. The property is comprised of 13,000 total rentable SF and is currently vacant with general office use. Sequoia was brought in to assist the client (whom had been turned down by a more conservative bank) and to procure a solution for the $3.6mm purchase. The primary difficulty included a loan that would allow for approximately $800m in Tenant Improvements necessary to convert the building to medical office.
Our group found a bank and CDC willing to fund the project (including the construction) at 90% Loan-to-Value. The client took advantage in securing a low-fixed rate 10 year loan coupled with a 12-month construction Interest Only Interim Loan. The interim loan will be replaced by a SBA 25-year fixed debenture upon the full owner-occupancy of the site.
For more information on construction related SBA 504 requests please contact us at 424-500-8520.
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