Regional Capital Announces $5,050,000 Bridge loan for a 325,000 SF Building
The RCG loan will assist in repositioning of former hospital
into a “Medical Park”
Marlton, NJ...Regional Capital Group (RCG), a private short term real estate lender and investment company, reports that it recently closed a $5,050,000 bridge loan on Bradley Research Center. The subject property, a 325,000 SF vacant hospital consists of four inter-connected buildings and resides on approximately 7.2 acres in Meriden, CT. It was constructed over a period of time, commencing in 1923 and ending in 1993. The property has been vacant since 1998 and was zoned as a hospital, which limited the uses of title. The Borrower acquired the property as a DIP, had the property re-zoned and the non-compete clause removed from the deed, restoring the site’s functionality and appeal.
During the rezoning process, the Borrower ran short of funds and was unable to fund the carry required for a facility of this magnitude. RCG’s bridge loan retired the debt incurred during the re-zoning period, and funded minor cosmetic improvements to the site and all operating costs required during this process. The goal is to position the property as tenant-ready or for sale.
The Borrower has obtained various LOI’s to sell or lease the property. Although multiple exit strategies exist, the Borrower requested flexibility to negotiate a deal which would maximize his return and profit in the project. Without a definite exit strategy, many lenders passed on the deal. The lack of a firm takeout of a bridge loan on a large piece of collateral did not fit into their lending parameters. RCG researched the medical office market in this area and, given the short supply and increasing demand for medical office space, the low LTV, the strength and character of the Borrower(s) and the collateral value, the loan was a good fit for RCG.
Regional Capital has the expertise to analyze and ultimately fund loans which fall outside of the “typical” lending parameters. With their experience, analytical ability, and creative lending models, they were able to recognize the value of the real estate. With multiple exit strategies and an extremely low LTV, RCG provided the bridge loan to position the Borrower(s) to make the best and most profitable decision for this site.
ABOUT REGIONAL CAPITAL GROUP
RCG is a private short term real estate lender and investment company focused on creative funding solutions. The team at RCG brings extensive experience in all aspects of real estate lending, investment and development. Funding programs include every piece of the capital stack which may be structured as senior debt, mezzanine, participating loans or equity. RCG provides immediate feedback to a borrower and structures unique and timely solutions to untraditional funding requests.
A direct commercial lender with over 50 years of combined experience and total funding of asset-based loans in excess of $3 billion, RCG was founded over 10 years ago by Paul P. Braungart with the fundamental philosophy of providing clients with a creative and specialized source of funds with maximum flexibility. As the portfolio grows, RCG continues to create innovative loan structures to meet the increasing demands of our specialized clients.
RCG provides viable alternatives to requests that are outside of traditional lending parameters or require a timely closing to take advantage of an opportunistic situation.
Our experience has taught us how to recognize opportunities that other lenders and investors may have overlooked. Loan types include Land, Land Improvement & Development, Construction and Bridge funding. Acceptable property types are Residential Spot Lot or Tract, Multifamily, Urban Rehab, Mixed Use, Office, Retail, Industrial and Self Storage. Other property types are considered on a case by case basis. When we are presented complete information, loan turn around time is among the most expedient in the industry.
