Avatar Financial Group has originated a $3.045 million bridge loan backed by a neighborhood retail center in suburban Cleveland, Ohio. The financing is secured by a two-building property along Lorain Road in North Olmsted and supports the sponsors’ acquisition of the center after traditional lenders were unable to close within the required timeframe.
The loan carries an initial term of 18 months and is structured as a first-lien position at 64% loan-to-value. According to Avatar Financial Group, the sponsors needed an expedited closing to complete the purchase, turning to this bridge vehicle when conventional lenders could not meet the transaction’s schedule. The borrower group is described as holding a significant portfolio of stable commercial real estate assets.
The 18-month bridge term is intended to give the sponsors time to lease the remaining space at the property and establish an operating track record that will be acceptable to a conventional lender. With additional tenancy and a longer performance history, the sponsors plan to refinance the asset with permanent debt, once the center is fully occupied and stabilized.
The collateral is located at 26508-26520 Lorain Road in North Olmsted and totals approximately 67,450 square feet on a 6.83-acre site. The main shopping center was originally constructed in 1979 and underwent a renovation in 2001. A separate outlot building of 4,500 square feet was completed in 2002, adding an additional freestanding retail component to the site.
Ashley Furniture Outlet serves as the anchor tenant for the main center, providing a national retail draw for the property. The outlot building is occupied by Vitamin Shoppe. The retail center sits within a broader retail corridor that includes nearby national and regional operators such as Giant Eagle, Marc’s Stores and The Home Depot, contributing to an established trade area setting.
Through this bridge loan, Avatar Financial Group is enabling the sponsors to move forward with their acquisition while they focus on backfilling the remaining vacancies and building the type of income history that a conventional lender typically requires for long-term, permanent financing on a fully leased retail asset.
