$2.0 Million Senior Bridge Loan – Knoxville Mixed-Use Property
October 2016 — Bloomfield Capital (Birmingham, MI), a national direct lender and specialty real estate finance firm, has announced the closing of a $2.0 million senior bridge loan. The loan proceeds were used to refinance and renovate a historic mixed-use property located in Knoxville, Tennessee.
“Bloomfield’s funds allowed the Sponsor to refinance the existing mortgage which had matured, and provide the capital necessary to begin renovating the property for new tenants”, stated Brent Truscott, a principal at Bloomfield Capital. “Once renovated, the Sponsor plans to move its business into a portion of the property and lease out the remainder of the space.”
Knoxville has seen a recent spike in historic renovations and the adaptive re-use of older industrial buildings. East Tennessee office vacancy rates are hovering around 7.0%, and no large deliveries of office space are planned for the Knoxville market. Class B space is being absorbed by new businesses and existing tenants alike, which is creating a strong market for affordable and flexible office space in the metro Knoxville area.
“Given the flexible layout of this property, and the low tenant improvement requirements to lease space, the Sponsor will have numerous options to re-tenant the building. Bloomfield’s flexible bridge loan will allow for a quick repositioning of this unique mixed-use building” Truscott added.