Case Study: $27MM Data Center | Acquisition 

Structured and arranged a high-leverage bridge loan to acquire and renovate a 160,000-square-foot data center.

Challenges

The real estate component was only a portion of the total project budget. The borrower plans to reposition the industrial property to accommodate multiple modular units with the most advanced data center software and cooling technology. Though there was some pre-leasing in place, most leasing would occur upon completion. Bridge loans at the requested leverage point are uncommon, especially for relatively new, venture-backed companies.

Solutions

Identified multiple options via a comprehensive marketing process, awarding the deal to a national lender that had extensive data and internet investments activity via affiliated entities. The private lender not only understood data centers but would also be able to underwrite borrower’s additional capital needs to cover leasing, improvements and scalability. Structured a carry and interest reserve, providing efficiencies and allowing for a non-recourse execution.