Avatar Provides Bridge Loan on NorCal Jack in the Box Properties

Avatar Financial Group LLC has provided a $5.1-million bridge loan secured by two freestanding, net-leased Jack in the Box restaurants in Redding and Grass Valley. The first-lien loan was originated at approximately 60% loan-to-value and with a two-year term.

The sponsor’s previous first-lien loan had passed its maturity date while remaining current on its required payments. Avatar’s financing retired that loan and consolidated the existing subordinate liens into a single junior position. The sponsor plans to market the properties for sale or obtain permanent financing before it matures.

“This was a loan-maturity problem, not a property-performance problem,” said T.R. Hazelrigg IV, Avatar’s president and co-founder. “Two restaurants were open and paying rent on leases that run well into the 2030s. Nothing about the real estate had changed. The complication sat above the assets, in a capital stack that had gotten more complicated than the properties themselves.”

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