Converting Retail to Industrial
Case Details
All Equity Request
$10,200,000
Difficult Location
Major Change In Use
Macon, GA
The Challenge
Provide the capital to convert a dark 400,000 sq.ft. retail property to industrial and light manufacturing usage. The property is not located in an industrial area. This generated resistance from some folks in the lending community who were skeptical about the demand generators. Also, the out-of-town sponsors had limited experience in industrial properties. Bond Street was tasked with finding both equity and debt for the project.
The Solution
Although several bridge lenders were willing to fund the deal, the best solution was to bring an all-equity investor to the table. The equity investor required a sizeable co-invest. We personally invested in the project because of our strong belief in the project and the clients. The client ended up investing less than 5% of the total capital required for the project. Our very smart and capable clients were able to completely renovate the project and generate substantial leasing. They continue to own and operate the project generating a very sizeable profit for their efforts.
