$11 Million Cash-Out Refinance Land Loan
|ST PETERSBURG, FL – Bison Financial Group, a real estate advisory firm based here, announces the closing and funding of a cash-out refinance loan secured by a waterfront development site located on the Inner Harbor in Baltimore, MD. This 43-acre parcel was once a heavy industrial site and electrical power plant requiring tens of millions of dollars of environmental cleanup by the previous owners. Bison’s client obtained entitlements for 1,500 residential units and 140,000 sf of retail / office.
The new loan has a fixed rate of 8% which is a significant rate reduction from the bridge loan that was retired with an 11% coupon. The closing occurred 24 business days after mutual execution of a term sheet. According to David Repka, Co-Founder of Bison, “The loan that was retired swept 100% of sale proceeds to pay down the principal balance. We were able to locate a new bridge lender that would allow a partial pay down when the first of several phases is sold. This provides our client working capital to invest in other projects. The new lender was also willing to roll up their sleeves, dig-in and really understand the eminent domain lawsuit that caused other lenders to pass on this opportunity.”
Fun fact: Bison was introduced to the opportunity by a long-time business associate and friend that was the boss of the borrower’s father at Memorex Corp. in the 1960s. Some people measure relationships in days or months, this fellow measures relationships in decades.
The principals of Bison Financial Group arrange debt and equity on commercial and investment real estate nationwide. Bison’s clients are entrepreneurially minded investors that constantly need access to creative, unconventional sources of capital. Since 1994 the principals of Bison have closed $2+ billion in transactions including $190 million since the heart of the global pandemic in 2020 when many lenders pressed the pause button or closed down completely.