Securing a commercial real estate acquisition often requires creative capital solutions, especially when a property’s value is tied to future development plans. ReProp recently demonstrated this approach with the financing of a commercial property in Buckeye, Arizona, positioning the borrower to capitalize on a growing market opportunity.

The borrower was in active discussions with a national auto parts retailer to serve as the property’s anchor tenant, while also negotiating with several additional tenants to occupy the remaining space. With strong leasing prospects and a clear vision for the site, the borrower needed financing that would allow them to move quickly and secure the acquisition before permanent development capital was available.

ReProp structured a two-part financing solution designed to bridge the gap. The transaction included a $1.25 million first lien loan, representing approximately 50% of the purchase price, along with a $215,000 second lien loan covering an additional 10% of the acquisition cost. This creative structure provided the borrower with the capital necessary to complete the purchase while preserving flexibility as leasing discussions advanced.

By combining first and second lien financing, ReProp helped the borrower move forward with confidence and maintain momentum on attracting quality tenants. As the project progresses and leasing activity continues, the borrower plans to refinance the acquisition debt with construction financing to support the next phase of development. ReProp is well-positioned to provide the future financing, creating a seamless transition from acquisition to construction.

This transaction highlights ReProp’s ability to deliver customized lending solutions that help commercial real estate investors execute their business plans, unlock property value, and bring new development opportunities to growing communities.