When Time Runs Out
Saving a Wisconsin Retail Portfolio
“Matured Loan Rescue“
The Challenge
A sophisticated property owner with a 35-property portfolio faced an expired loan on a partially occupied retail shopping center in Janesville, Wisconsin. The 9‑unit property was generating significant monthly cash flow but sat at only 67% occupancy.
The owner had invested over $527,000 in property improvements, including essential roof repairs and infrastructure upgrades—demonstrating commitment to the asset's long-term success. But traditional lenders were hesitant to refinance a partially vacant retail center, regardless of strong fundamentals and experienced ownership.
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Why Banks Couldn't Help
- Occupancy concerns: 67% occupancy spooked conventional underwriters despite strong cash flow from quality tenants like OfficeMax and Fresenius Medical
- Matured loan pressure: Banks needed weeks for committee approvals while the borrower needed immediate relief
- Retail hesitation: Many institutional lenders had pulled back from retail financing entirely
- Rigid requirements: Traditional lenders couldn't see past the vacancy to the clear business plan and strong sponsor
How Spectra Stepped In
We understood what the borrower needed wasn't just capital—it was a true partnership that recognized both the challenge and the opportunity.
Our $5.1M Bridge Solution
- Immediate relief from the matured loan situation
- Flexible structure with a 2-month initial term and 3-month extension option
- Smart trigger mechanism allowing extension upon reaching full occupancy
- Creative underwriting that valued the business entity and additional collateral for extra security
The key insight? This wasn't a distressed situation—it was an experienced operator with quality assets who needed runway to execute a clear lease-up strategy.
The Partnership Approach
Rather than viewing this as a problem loan, Spectra recognized an opportunity to partner with an experienced operator during a temporary challenge. The flexible extension structure aligned our interests with the borrower's leasing timeline, creating a true win-win scenario.
What made this deal special: The property owner was an experienced real estate professional with strong net worth and an impressive portfolio across multiple states. This track record demonstrated the expertise needed to successfully execute the lease-up strategy.
Market Context
Janesville's strategic location—35 miles southeast of Madison—with strong infrastructure access via Interstate 90 provided solid fundamentals for the retail property. The center was anchored by established national tenants in a proven retail corridor.
The Bottom Line
When traditional lenders see problems, Spectra Lending sees solutions. This deal exemplifies our approach to complex situations where property owners need more than just financing—they need a strategic capital partner who understands their business plan and timeline.
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The Spectra Lending Difference
What sets Spectra Lending apart? Discover the key reasons below that make us different from other lenders.