Los Angeles, CA— iBorrow has provided a $2.25 million acquisition loan for the purchase of a nearly 5,000-square-foot retail center located east of downtown Long Beach.
Although the property is currently 100% occupied, the borrower is planning a major redevelopment and upgrade of the center with a mix of national and local credit tenants. The borrower is taking advantage of the below market month to month lease rates to the increase income at the property.
“This particular retail center was an attractive investment for us because it is truly urban infill property that has been underutilized for a long time. The strong demographics in the immediate surrounding area plus the pre-leasing the borrower has done made us comfortable being involved in the project,” said iBorrow CEO Brian Good. “The loan was structured with a one-year interest reserve and a $600,000 holdback, which gives the borrower the flexibility and timing needed to re-develop the center. Additionally, the structure de-risks this loan on our end.”
In addition to the retail property, the loan collateral also includes a nearby single-family residence, which will be sold in the next few months. The proceeds from the sale of the home will be used to pay down the loan.
The borrower, Pacific Collective Real Estate Investments, is a Southern California-based real estate investment group who administers and manages a fund that identifies select opportunities to engage in value-add or ground-up development projects. They have owned and developed 900,000 square feet of commercial real estate.