Briar Capital Real Estate Fund provided a $2.25 million real estate term loan to an airplane parts and equipment distributor located in Indianapolis, IN. The loan is secured by the distributor’s two owner-occupied office/warehouse facilities. The distributor buys stock airplane part packages in bulk and sells off the individual parts or smaller packages to support the repair and maintenance of airline fleets.
The distributor’s sales declined sharply in both 2018 and 2019 following a worldwide shift in the supply of airplane spare parts. Furthermore, the distributor was forced to write down its inventory to more accurately reflect its realizable value. As a result, the distributor’s long-time bank placed it in default and asked it to seek alternative financing for its real estate term loan.
After an introduction by the existing banker, Briar Capital Real Estate Fund documented a new real estate loan facility to accommodate the bank’s wish to exit the relationship. With a collateral based approach, Briar Capital Real Estate was able to overlook the distributor’s recent financial performance challenges and provide a covenant free, payment friendly term loan solution.
Providing owner-occupied real estate loans from $1 million to $10 million and across all 50 states, Briar Capital Real Estate Fund is a real estate lender of the asset-based lending community.
