Briar Capital Real Estate Fund closed a $7.9 million commercial real estate loan to a precast concrete products company located in Florida that had been dealing with supply chain issues and material shortages as a result of the COVID-19 pandemic.
Pressured to leave by its bank, which was rapidly amortizing its debt, the company engaged a financial advisor to help it find a new lender. With a variety of assets to pledge for the loan, the advisor contacted Briar Capital and several other lenders. While specific attributes of the company’s accounts receivable (progress bills and retainage) made it challenging for traditional working capital lenders to finance the business, the company chose Briar Capital to leverage its real estate assets using a long-term amortization and personal recourse-free loan.
Briar Capital provided sufficient funding to retire the bank debt, while the equity in the real estate allowed Briar to generate additional liquidity for the company. The company has used the additional funds to address its backlog and other working capital needs.
