Borrower is a record store / live music venue owner and operator leasing space in downtown Pittsburgh and had an opportunity to purchase a commercial mixed use building just a few blocks away at a significant discount. Borrower intends to renovate and relocate to the new building but needed a lender who could close within the seller’s timeframe.
Red Fox was able to step in and provide 92% of the funds required for the acquisition and renovation of the property. The Borrower’s unencumbered residential real estate properties were taken as additional collateral to shore up Red Fox’s position and allow for a quick and easy close.
With a 12 month term (and 6 month extension option), the Borrower will have sufficient time to complete renovations, open its business in the commercial space, and secure permanent financing either through an SBA or conventional lender.