Structured and arranged a non-recourse bridge loan for the acquisition of a historic 43,000-square-foot office building in Downtown Miami, Florida.
The borrower planned to take the property through the permitting process to add 10 stories and convert into a hotel.
Challenges
The borrower’s potential lender dropped the deal in the middle of due diligence, forcing a scramble to find a replacement in time to satisfy a TOE closing, that was spurred by the seller’s 1031 timetable. Additionally, the property had not obtained 40-year recertification precluding obtaining clean title and leaving ambiguity on the scope of required renovations that might be required by the local municipality. Furthermore, the property was predominately vacant with remaining tenants on month-to-month leases.
