- Loan Amount: $200,000
- Interest Rate: 11.9%
- Loan Term: 6 Months
- Property Type: Retail Strip
- Loan Type: Commercial Bridge and Rehab
This commercial bridge loan was exciting to put together. Our borrower wants to give this old commercial retail space a much-needed update by renovating it into a more modern set of live/work spaces. This is a great idea, as Tucson’s economy begins to produce more and more entrepreneurs and companies looking to be in the growing Southern Arizona market.
The Tucson Commercial Real Estate Market saw some of the strongest recovery in 2016, and achieved a vacancy of 10.5%, while the historical average had remained at 12%. This has been thanks to the population growth Tucson saw, as well as more commercial development in Tucson. With a projected 7,100 new jobs for 2017 being expected, more commercial office spaces such as the one our borrower will be renovating will be in demand.
With previous experience with adaptive re-use projects, our borrower has shown their innovation to redesign commercial and residential properties to revitalize the property and even bring new life to the commercial property. By keeping the building’s characteristics and reworking the structure to be more appealing our borrower focuses on retaining the historic charm of a building and updating it for the modern times.