Borrower owns a gas station / c-store with 15 years left on a ground lease. Old tanks were pulled, canopies redone and new store will be erected on site. Project was initiated all cash, with a lender promising to come in to complete construction. After months; lender had not committed, owner/operator was out of cash and project was about to stall.
Red Fox was able to close the deal in less than 14 days. Red Fox took the construction project as collateral and shored up its position with a second mortgage on another operating station owned by Borrower. The ability to close quickly, work around complex legal issues, and handle construction funding mid-steam kept the project moving forward.
The transaction was brought to Red Fox by an SBA lender. Red Fox closed quickly and enabled the SBA referral source to 1) complete its underwriting and get approval, and 2) bridge the construction and delivery risk. At completion, the SBA 7 (a) loan will repay the Red Fox commitment and will only encumber the new station.