Flatbay Capital is excited to announce the successful funding of a $2.5 million Owner-Occupied Commercial Real Estate Bridge Loan for a family-owned fabricator and supplier of HVAC ductwork.

Collateral: Warehouse

About the Company

This company primarily serves the commercial market, specializing in partnerships with general contractors who are involved in multifamily residential developments and school districts.

Their commitment to delivering customized HVAC ducting solutions tailored to each project has set them apart in the industry. Operating in the Texas market, they have remained exceptionally busy, primarily due to the local climate's demand for air conditioning systems.

The Situation

The COVID-19 pandemic caused significant delays in the ducting provider’s large-scale projects, resulting in increased costs of goods sold for metal, which could not be promptly passed on to clients. Furthermore, payroll obligations were not reduced at a fast enough pace to match the project delays.

With the increase in cost on all fronts, they couldn’t keep up with their debt obligations or current backlog. Unfortunately, they were deemed unbankable.

However, that didn’t stop the family-owned business from seeking alternate funding.

The Solution!

Flatbay Capital understood that this company was on an upward trajectory, they just needed flexibility and time.

Managing Partner Elliot Smith states, “When we were referred this opportunity from a CPA firm we immediately knew that we could help. Our flexible CRE loan solution will give them the capital and time they need in order to grow their business once again.”

The funds from this owner-occupied commercial real estate loan were used to pay off the current CRE bank loan, with the remaining balance available for general working capital needs. Flatbay Capital believes this opportunity will assist this historically profitable business in regaining financial stability within the next 24-36 months.

A big thank you to our client for partnering with Flatbay Capital! We can’t wait to see your expected turnaround nearing the middle of 2024!