The Waterfall Block consists of an eight-property portfolio of distressed assets encompassing 58,288 square feet in downtown San Diego. The portfolio included retail, office, mixed-use and SRO residential located a few blocks off the historic Gas Lamp District.
The previous owner acquired this portfolio over a 3-year period, and paid $33m with the intention to develop hi-rise residential. When the market crashed, feasibility for the completion of a $130m hi-rise diminished substantially and the developer was forced to sell the asset well below the underlying debt.
Steelhead Capital worked with the new developer who acquired the asset for $13m to finance the project for redevelopment and was able to obtain a 3-year bridge/ redevelopment loan through a mortgage REIT. The loan is non-recourse and represented 85% loan to cost.
Loan Type: 3-year Bridge Loan
Loan Amount: $11m
If you are interested in exploring a similar solution for your investments, please submit a secure loan request and one of our expert advisors will do their best to assist your financing needs.