Business Loan Capital, Inc. (BLC) has completed the refinance of two neighboring Ohio office buildings. Owned by the same borrower, the properties were originally consolidated under one loan which was under extension and set to mature soon. BLC bifurcated the original financing into two loans of $11,275,000 and $6,825,000 cross-collateralized by both properties.
The first property is a 240,457-square-foot office building which is 95% occupied by one tenant, with a lease that expires in 2030. The tenant recently completed a major property renovation and utilizes the building as their corporate headquarters. As such they intend to stay in the building long-term.
The second property is a 288,815-square-foot lab/office building which is 100% leased under a master lease agreement by one tenant. The master lease expires in early 2025; after which the tenant plans to vacate the property to move to a new headquarters currently under construction. There are three tenants that currently sublease space, that will remain and plan to lease additional space. Additionally, the borrower will use the time between close of escrow and the master lease expiration to secure new tenants. The master lease expiration was the reason for the need for bridge financing. Upon stabilization of this property the borrower will seek out long term financing.
