The Barlow

prop5

$98,620,000 Debt Placement
215,000 SF Lifestyle Retail & Industrial Development
Sebastopol, CA

Financing Details:
$23,500,000 Construction Loan
$23,800,000 Permanent Loan
$5,000,000 Bridge Loan
$8,820,000 Mini Perm Loan
$37,500,000 Permanent Loan

Transaction Overview: The property was originally an abandoned apple factory on the outskirts of Sebastopol, 55 miles north of San Francisco. The developer had planned the site for a mix of local retail and industrial uses, with two wineries serving as the project’s anchors. Coming out of the great recession, it was difficult to obtain construction financing in smaller markets, especially for atypical projects and local-credit tenant profiles. After an extensive marketing campaign, principals of Schelin Uldricks & Co. identified a balance sheet lender that believed in the developer’s vision for the project and provided construction financing that brought the project to life. As soon as construction was completed, the property was refinanced with two separate loans; a permanent loan to enable the developer to take interest rate risk off the table, and a smaller bridge loan to continue lease-up of the remaining vacant space. Later, the smaller bridge loan was upsized with a mini-perm loan once leasing was complete to provide some cash out to the developer and a coterminous loan with the already-in-place permanent loan. Upon final stabilization, principals of Schelin Uldricks & Co. arranged a long term fixed-rate non-recourse loan for the project that enabled the developer to pull cash out of the project and pay off one of his partners.

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