Buchanan Mortgage Holdings, LLC provided a $9,235,000, non-recourse senior loan secured by a 3.51-acre development site located in Huntington Park, California. Originally zoned for 80,000 SF of industrial/warehouse, the sponsor successfully re-entitled the site for a 216,000 SF self-storage development, adding significant value to the land in the process. Due to the conservative 22% LTV (based on appraised as-is market value) and in-house self-storage expertise, BMH was able to provide a quick-close acquisition loan that funded 100% of the sponsor’s option purchase price and returned a portion of their previously incurred pursuit & entitlements costs. The loan structure also includes a partial release provision for a retail pad and flexible prepayment terms to accommodate multiple potential exit strategies. This is the third loan that BMH has closed with the sponsor.
