SG Credit Partners provided $1.25 million in financing for a real estate acquisition by a single-asset real estate holding company owned a by a carwash company based in the Midwest.
The company executed a purchase agreement on a property it intended to acquire to construct an expansionary carwash location under its existing brand. The company needed 100% upfront debt financing to close on the acquisition and for working capital for the entitlement process before seeking construction financing.
SG underwrote the real estate as well as the personal guarantees of the two founders, who maintained outside personal liquidity as well as equity in various real estate and business holdings. The personal balance sheets of the guarantors allowed SG to be aggressive with its advance rate on the real estate collateral (greater than 100% LTV when including additional working capital provided). SG’s capital was non-dilutive.
