BIRMINGHAM, Mich., Oct. 1, 2015 /PRNewswire/ -- Bloomfield Capital, a direct lender and specialty real estate finance firm, and Alpha Alternatives (Chicago, IL), a nationwide commercial real estate capital markets firm, have announced the closing of a $8.5 million senior bridge loan. The loan proceeds were used to purchase a discounted note from the existing lender on a 102,000 SF Class B office building in Schaumburg, IL and a 34,000 SF Class B office building in Milwaukee, WI.
Bloomfield Capital was approached by Alpha Alternatives to create a bridge loan structure for the existing sponsor. That structure included funding a $6.6 million discounted note purchase plus additional funds for interest and renovation reserves, totaling $8.5 million. The 1980's vintage Class B buildings had dated common areas that needed immediate renovation and the Sponsor required additional capital for tenant improvements and leasing commissions. The buildings averaged below 70% occupancy at closing in submarkets where the average occupancy was well above that level.
"This transaction allowed the Sponsor to reduce its basis on two well located assets which had been over-leveraged prior to the 2008 real estate market correction," stated Jason Jarjosa, a principal at Bloomfield Capital. "Although the real estate markets have improved over the past several years, there is still a large overhang of legacy debt which needs to be marked down and recast at an appropriate level."
Matt Stearns, a senior vice president at Alpha Alternatives added, "By using Bloomfield's senior bridge capital, we were able to negotiate a significant discount for our client from the prior lender, as well as obtain the additional capital needed to pay for new tenant improvements and leasing commissions at the properties. Since closing the loan, the Sponsor has lowered lease rates and began adding new tenants to both buildings. Alpha Alternatives specializes in these types of complex and fast moving opportunities where a creative lender is the key to success."
About Alpha Alternatives
Alpha Alternatives specializes in a broad range of commercial real estate capital market solutions for all asset classes which include: bridge financing and joint venture equity for workouts and value add opportunities, permanent financing for stabilized core assets via CMBS and Life Company along with mezzanine and preferred equity.
About Bloomfield Capital
Headquartered in Birmingham, Mich., Bloomfield Capital is a direct real estate lender and equity investor meeting the demands of specialized, time-sensitive transactions. The firm focuses on small to medium-balance debt opportunities ($1 million to $15 million) and select joint-venture equity participations with owners, operators and developers throughout the nation. Bloomfield Capital offers particular expertise in unconventional financings where industry acumen, local knowledge and attention to special circumstances will result in a substantial financial advantage to the sponsor.
As a direct investor and lender, Bloomfield is able to create flexible, custom-tailored investment solutions for each unique situation. With offices in the Detroit, Denver and Chicago, Bloomfield Capital can be found online at www.bloomfieldcapital.com.
SOURCE Bloomfield Capital