Avatar Financial Group LLC has originated a $5.1 million bridge loan backed by two freestanding, net-leased Jack in the Box restaurants in Redding and Grass Valley. The new first-lien financing was structured at approximately 60% loan-to-value with a two-year term, and is secured by both quick-service restaurant properties.
The sponsor had been operating under a prior first-lien loan that had already passed its maturity date, even though payments continued to be made as required. In addition to the senior debt, the capital stack included multiple subordinate liens that added complexity above the underlying real estate. Avatar’s bridge loan was structured to address this situation while maintaining stability at the property level.
Proceeds from the new loan were used to retire the sponsor’s previous first-lien financing and to consolidate the existing subordinate liens into a single junior position. This restructuring simplified the capital stack and provided a defined runway for the sponsor to execute its next step, whether pursuing a sale or lining up new long-term debt.
According to Avatar president and co-founder T.R. Hazelrigg IV, the situation was driven by loan timing rather than asset fundamentals. He noted that the challenge centered on a loan-maturity issue, not on operating performance at the properties. Both Jack in the Box restaurants are open and paying rent, supported by leases that extend well into the 2030s.
Hazelrigg emphasized that nothing material had changed with the real estate itself, and that the complication was situated above the properties in the layered capital structure. By providing a first-lien bridge loan, Avatar positioned the sponsor to navigate the near-term maturity risk while keeping the assets in place under long-term leases.
With the bridge loan in place, the sponsor now has a limited window to either bring the assets to market for disposition or secure permanent financing prior to the new loan’s maturity. The structure reflects a targeted use of short-term capital to resolve a legacy maturity issue while maintaining continuity for the tenant and income stream.
