Briar Capital Real Estate Fund closed a $3.8 million commercial real estate loan for a Georgia-based manufacturer of wood products for the arts and craft industry.
The initial transaction was an owner buyout of a family member with a simultaneous new investor in the business. Included in the buyout agreement was an option to purchase the company’s real estate at a future date. This is where Briar Capital Real Estate Fund stepped in to help by way of an introduction via the company’s working capital lender.
Briar Capital not only funded the real estate purchase option but also included the expenses required to close and a monthly payment reserve to help ease monthly cash flow demands. Not to interfere with the incumbent lenders all asset UCC Filing on the business, Briar Capital funded the acquisition of the commercial real estate through a newly formed entity created exclusively to hold the property. In a simultaneous transaction, the referring working capital lender also agreed to increase their line to further support the operations of the business and tenant of Briar’s new borrower.
“The overall transaction helped provide the business much needed access liquidity to and position them for continued success and future growth,” Jeff Appleton, executive vice president of Briar Capital, said. “We enjoy being brought in by a working capital lender already in the transaction, it means they view us as a trusted partner.”
“We pride ourselves on collaborating with other lenders in the capital stack and relish the opportunity to work on situations others deem too complicated,” Leah Goldberg, CFO of Briar Capital, said.
