Ready Capital National Bridge Team Closes Over $270 Million

NEW YORK, Sept. 16, 2019 (GLOBE NEWSWIRE) -- Ready Capital’s National Bridge Originations Team announces the closing of acquisition, mixed-use acquisition, renovation, refinance, redevelopment, stabilization and lease-up loans for approximately $270 million in eight states.

The Tampa, FL, loan provided financing for the acquisition, renovation and stabilization of an approximately 365,000 SF, Class B, industrial property located in the East Tampa submarket. Upon acquisition, the sponsor anticipates completing capital expenditures and executing leases with long-term tenants. The capital improvement plan includes various interior repairs, HVAC replacement, roof repairs, fresh paint, and parking lot maintenance. Ready Capital closed the $13.4 MM, non-recourse, interest only, floating rate loan that features a 36-month term, one extension option, flexible prepayment, and is inclusive of a facility to provide future funding for capital expenditures, tenant leasing costs, and interest and operating reserves.

The Greenwood (Indianapolis), IN, loan provided financing for the acquisition, renovation and lease-up of an approximately 162,000 SF, Class B, portfolio that includes two office buildings and one flex building. The loan will be used to renovate the property and provide the tenant improvements and leasing costs for the remaining vacant space. Ready Capital closed the $6.6 MM, non-recourse, interest only, floating rate loan that features a 36-month term, two extension options, flexible prepayment, and is inclusive of a facility to provide future funding for the capital expenditures and tenant leasing costs.

The Chicago, IL, loan provided financing for the acquisition, renovation and lease-up of an approximately 177,000 SF, Class B, office building located in the Central Loop submarket. The loan will be used to renovate the building and lease the property to market. Ready Capital closed the $24.6 MM, non-recourse, interest only, floating rate loan that features a 36-month term with two extension options, flexible prepayment, and is inclusive of a facility to provide future funding for capital expenditures, tenant improvements, leasing costs and interest reserves.

The San Bernardino, CA, loan provided financing for the acquisition, renovation and lease-up of an approximately 50,000 SF, Class B, flex/industrial building located in the East San Bernardino submarket. The loan will be used to make minor capital expenditures and convert several existing office suites into flex layouts. Ready Capital closed the non-recourse, interest only, floating rate loan that features a 48-month term with one extension option, flexible prepayment and is inclusive of a facility to provide future funding for capital expenditures and tenant leasing costs.

The West Palm Beach, FL, loan provided financing for the acquisition, renovation, reflagging and stabilization of a 199-key, full-service hotel. Upon acquisition, the sponsor anticipates completing a property improvement plan and reflagging the property from a Holiday Inn to a Crowne Plaza. Ready Capital closed the $18.0 MM, non-recourse, interest only, floating rate loan that features a 36-month term, two extension options, flexible prepayment and is inclusive of a facility to provide future funding for the property improvement plan and interest reserves.

The Mesa, AZ, loan provided financing for the acquisition, renovation and stabilization of an 84-unit, Class C, multifamily property located in the East Valley submarket. The property is currently 98% occupied, including 18 units that were recently renovated. The loan will be used to renovate the remaining units. Ready Capital closed the $7.0 MM, non-recourse, interest only, floating rate loan that features a 36-month term with two extension options, flexible prepayment and is inclusive of a facility to provide future funding for the capital expenditures.

The Portland, OR, loan provided financing for the acquisition, repositioning and lease-up of an approximately 42,000 SF (57,000 SF as-complete) flex property located in the Central East Side submarket. The loan will be used to convert the current industrial buildings into contemporary creative office spaces. The sponsor anticipates connecting the buildings via a modernized tenant entry and common area, complemented with a new elevator system. The repositioning will also include roof top access, improved common areas, updated exteriors, and additional parking. Ready Capital closed the $13.8 MM, non-recourse, interest only, floating rate loan that features a 36-month term with two extension options, flexible prepayment, and is inclusive of a facility to provide future funding for the capital expenditures, tenant leasing costs and an interest reserve.

The Dallas, TX, loan provided financing for the acquisition, renovation and stabilization of a 144-unit, Class B, multifamily property located in the Lake Highland submarket. Upon acquisition, the sponsor will implement a capital improvement plan and renovate existing units to maximize net operating income and increase property value. Ready Capital closed the $12.5 MM, non-recourse, fixed-rate bridge loan that features a 60-month term, declining prepayment, and is inclusive of a facility to provide future funding for the capital expenditures.

The Los Angeles, CA, loan provided financing for the recapitalization, renovation and stabilization of an approximately 9,000 SF retail building located in the Hollywood submarket. The loan will be used for capital expenditures such as updated façades, roof replacement, and warm shell improvements to deliver a creative retail environment for prospective tenants. Ready Capital closed the non-recourse, interest only, floating rate loan that features a 24-month term with one extension option, flexible prepayment, and is inclusive of a facility to provide future funding for capital expenditures, soft costs, tenant leasing costs and interest and operating reserves.

This Chicago, IL, loan provided financing for the acquisition and stabilization of an approximately 450,000 SF, Class B, office property located in the East Loop submarket. The loan will provide funds for the leasing costs associated with extending tenants long term and stabilizing the rent roll at market rents. Ready Capital closed the $44.4 MM, non-recourse, interest only, floating rate loan that features a 48-month term with one extension option and flexible prepayment.

The Houston, TX, loan provided financing for the acquisition, renovation and stabilization of a 248-unit, Class C, multifamily property. Upon acquisition, the sponsor will perform capital improvements and renovate existing units to move rents to market. Ready Capital closed the non-recourse, floating-rate loan that features a 36-month term, two-extension options, flexible prepayment and is inclusive of a facility to provide future funding for capital expenditures and an earnout upon satisfying a pre-determined threshold.

The Columbus, OH, loan provided financing for the acquisition, renovation and stabilization of a 376-unit, Class C (Class B as-complete), multifamily property located within an Opportunity Zone in the North Rickenbacker submarket. Upon acquisition, the sponsor will implement capital improvements to all units and upgrade common area amenities. Ready Capital closed the $19.3 MM, non-recourse, interest only, floating rate loan that features a 48-month term with one extension option, flexible prepayment and is inclusive of a facility to provide future funding for capital expenditures and an interest reserve.

The Montebello, CA, loan provided financing for the acquisition of an approximately 242,000 SF, two-property industrial portfolio located in the Southeast Los Angeles submarket. The sponsor executed a single-tenant lease with a large multi-national industrial company prior to close and needed a lender who could deliver certainty of execution and a quick close. Ready Capital closed the $11.0 MM, non-recourse, fixed rate loan that features a 36-month term, 24-months interest only and no prepayment penalties.

The Napa, CA, loan provided financing for the refinance, renovation and lease-up of an approximately 24,000 SF, vacant, mixed-use property. The loan will be used to convert the former fitness center into a high-end, mixed-use property, consisting of ground floor retail and office space on the second floor. Ready Capital closed the $7.5 MM, non-recourse, interest only, floating rate loan that features a 36-month term, two extension options, flexible prepayment, and is inclusive of a facility to provide future funding for the capital expenditures, tenant leasing costs and interest and operating reserves.

The Culver City, CA, loan provided financing for the refinance, repositioning and lease-up of an approximately 38,000 SF, vacant, creative office portfolio. The loan will be used to reposition the property from dated, traditional office to modern, creative-type finishes and simultaneously provide a facility for tenant lease-up. Ready Capital closed the $18.1 MM, non-recourse, interest only, floating rate loan that features a 36-month term, two extension options, flexible prepayment, and is inclusive of a facility to provide future funding for the capital expenditures, tenant leasing costs and interest and operating reserves.

This Dallas, TX, loan provided financing for the acquisition, renovation and stabilization of an approximately 215,000 SF, mixed-use property located in the Central Business District submarket. Upon acquisition, the sponsor will implement various capital expenditures to renovate existing multifamily units, common areas, and property exteriors. In addition, the loan will be used to provide tenant leasing costs that will enable the sponsor to re-tenant vacant retail suites. Ready Capital closed the $29.8 MM, non-recourse hybrid rate loan which is pari passu, part-fixed rate and part-floating rate. The loan features a 60-month term, flexible prepayment and is inclusive of a facility to provide future funding for the capital expenditures and tenant leasing costs.

The San Marcos, TX, loan provided financing for the acquisition, renovation and stabilization of a 162-unit, Class B, multifamily property. Upon acquisition, the sponsor will perform capital improvements and renovate existing units to move rents to market. Ready Capital closed the $15.1 MM, non-recourse, floating-rate loan that features a 36-month term, two-extension options, flexible prepayment and is inclusive of a facility to provide future funding for capital expenditures.

For more information, contact:
David A. Cohen, david.cohen@readycapital.com
Managing Director – National Bridge Originations

About Ready Capital:
Ready Capital (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services small- to medium-sized balance commercial loans. Our National Bridge Originations team offers non-recourse financing on transitional, value-add and event-driven commercial and multifamily real estate opportunities. Ready Capital is a direct lender that provides comprehensive financing solutions to real estate owners, investors and small business owners, which generally range in original principal amounts between $3.5 - $35 million and larger for select portfolios and assets.

This press release contains statements that constitute "forward-looking statements," as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; the Company can give no assurance that its expectations will be attained. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

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