Buchanan Mortgage Holdings, LLC provided a $14,500,000 (69% LTC; 43% LTV) bridge loan to convert a four-story, 37,700 SF office building into for-sale commercial condominiums in Hermosa Beach, California. At the time of loan closing, the property was 74% leased to a mix of 24 wellness medical, event planning and healthcare tenants. The sponsor, a privately-held real estate investment company, has recorded a commercial condominium map and can begin marketing units for sale immediately. BMH was able to close within the required acquisition timeframe by quickly understanding the positive market dynamics driven by a lack of available for-sale product in an affluent coastal city and the permitted medical use under the zoning code. The transaction represents BMH’s fifth loan with the sponsor.
