Office in California

California
$6,500,000
Office

Inland Mortgage Capital is pleased to announce the closing of a $6,500,000 non-recourse, bridge loan on a multi-tenant office building in the city of San Leandro, California. The loan proceeds will be used to acquire the 4-story, 34,149 SF Class B building, and to fund 100% of the budgeted lease up costs and capital improvements.

IMC was able to facilitate the Borrower’s opportunity to acquire the building in an off-market transaction from the Seller/Owner occupant. The Seller wanted to downsize to one floor and the vacated interior office space is in need of a significant facelift, due to outdated design features.

Despite the 28% occupancy at closing and minimal to no cash flow, IMC structured the transaction to meet the Borrower’s cap stack requirements. IMC was able to forgo any prepayment protection within the loan, structure an interest reserve, and commit future funding without charging interest to the Borrower, until the funds are drawn.

The property is in a desirable, main commercial artery in downtown San Leandro. With the San Leandro BART (Bay Area Rapid Transit) within walking distance of the office, commuters living in the East Bay and San Francisco will have easy access to the area. Also, the property has the capability to be connected to the San Leandro fiber optic loop, making it ideal for future high-tech tenants looking for a competitive advantage with high-speed internet connectivity.

With the high office rents in San Francisco and Oakland proper, San Leandro is solid lower rent alternative with relative easy access to both CBD’s.