BridgeInvest Continues Texas Expansion with $2.2 MM Loan for Flex Building in Dallas
1st Priority Deed of Trust
Southeast focused bridge lender, BridgeInvest, recently closed a $2.2 MM, first-priority loan secured by a 62,000 SF flex building in Dallas, TX. The property, built-to-suit in 1997, is owned and used by the sponsor, Cash Processing Solutions (“CPS”), a leader in the cash sorting and authentication industry. It benefits from its excellent location within the Las Colinas Business Park, with immediate proximity to DFW Airport and various key transportation arteries linking it to the greater Dallas-Ft. Worth Metroplex. The sponsor sought to leverage the significant equity in the property, which it owned on an all-cash basis. CPS, which was recently acquired by UK-based private equity firm Privet Capital, expects to use the loan proceeds to fund its working capital needs as the business expands to meet growing customer demand.
Due to growing orders, CPS needed to work with a lender who could be relied upon to close quickly on the terms promised to the sponsor.
Since the property was owned and used by the same company, the property produced no cash flow making it difficult for many lenders to underwrite. BridgeInvest was able to see the intrinsic value of the well located building and offered an attractive loan to allow the sponsor to take advantage of its market opportunity.
Due to the recent acquisition by Privet Capital, the sponsor was ultimately owned by a foreign private equity fund. BridgeInvest was able to understand Privet’s business and operating structure to efficiently underwrite and structure the loan, which included a guaranty from Privet’s fund as opposed to traditional ‘warm body’ guarantors.