On April 1, 2020, Inland Mortgage Capital, LLC (“IMC”) successfully closed a $5,000,000 non-recourse bridge loan secured by an office flex complex in Jacksonville, Florida.
The loan proceeds were used to provide some cash-out for the otherwise unencumbered office complex and for future advances for leasing. The collateral consists of four Class-B multi-tenant buildings. The borrower had acquired the property along with the adjacent parcel, known as the Phase I portion, in 2017. After successfully stabilizing Phase I, the borrower was able to sell Phase I and pay off all mortgage debt. The success of the Phase I execution provided IMC with confidence in the location and the borrower’s overall business plan.
The transaction was challenged by the impact of the COVID-19 pandemic on the broader economy and the property. Despite the numerous headlines of financing transactions falling apart in the face of the pandemic, IMC strongly believed in the fundamentals of the transaction and a decision was made to close it despite the current uncertainty in the marketplace.
