Case Study: $10.5MM Suburban Office Building | Acquisition | Austin, TX
Structured and arranged a bridge loan for the acquisition of an owner-occupied, 29,000 square-foot suburban office building in Austin, Texas.
The asset was under contract prior to market disruption caused by the global pandemic. The market conditions exhausted a series of purchase contract extensions, and the sponsor possessed a short timeframe to close the transaction once originated. The pre-disruption agreed-upon purchase price created a leverage risk concern for lenders.
Eyzenberg & Company identified a bridge lender willing to advance proceeds based on the purchase price rather than the current appraised value with a structured amortized paydown of the overall loan amount to reduce basis within the first six months. The lender was very familiar with this market’s continued strength and felt there was strong support for suburban office product.