Bloomfield Capital closed a $4.5 million senior bridge loan, which provided the capital necessary for the acquisition and delivery of prefabricated steel for the construction of a mixed-use sports complex in Detroit. The sponsor required immediate execution due to an expiring purchase order at attractive pricing for the building materials.
The sponsors own multiple commercial real estate assets in Metro Detroit, including gym and athletic training facilities. Bloomfield’s bridge loan will allow for the sponsors to continue the expansion of their business and execute their business plan.
“COVID-19-related supply chain issues continue to plague the construction industry,” Brent Truscott, a partner at Bloomfield Capital, said. “If we were not able to meet a tight closing timeline, our Sponsors would have had to wait an additional 18 months to take delivery of their steel building structure at a significant price premium to their pre-existing contract price. As a direct capital provider and balance sheet lender, Bloomfield Capital can provide flexibility and expediency when time is of the essence on unique financing situations.”.
The sponsors plan to refinance Bloomfield’s bridge loan with a conventional construction loan once the rest of their municipal and development plans and approvals are completed for the site.
