Inland Mortgage Capital finished off 2017 by closing a $7,300,000 non-recourse first mortgage loan secured by two industrial buildings in Southern California. One of the buildings was occupied with a relatively short-term lease, and the other was vacant and had been for some time. The loan was used by the Borrower to acquire the property and renovate the vacant building, so that some of the functional issues with that building would be rectified.
DSCR at closing was .5x, but a combination of a very experienced Sponsor and a tight industrial submarket provided IMC with the comfort to provide a loan at 75% loan-to-cost. The Seller was an estate of the original Developer and the properties had a variety of title issues that had to be resolved. IMC was willing to work with the Borrower as they navigated due diligence and worked through the various legacy issues over an extended timeframe.
IMC provided a non-recourse loan with future fundings (with no interest charged until disbursement) for the cap ex and tenant improvements, and offered a partial release structure for a possible sale of one of the two buildings.
