At closing, the property was a 9-acre site improved with 156,000 sq ft of class-B office (only 29% occupied). The Borrower plans to process entitlements for residential town homes.
HRC arranged $11.4 million (75% loan-to-cost) in non-recourse interim financing to process residential entitlements. In the event that the Borrower does not obtain entitlements, the loan allows the flexibility to re-allocate reserved funds to reposition the existing office park. The loan is floating rate over LIBOR and features a declining prepayment structure.