$1,700,000 Acquisition in San Francisco, CA
Industrial Acquisition Loan in
San Francisco’s Mission District
Loan Amount: $1,700,000
Loan Term: 12 Months
LTC: Under 70%
Lien Position: 1st Deed of Trust
Completing an industrial acquisition in San Francisco often comes down to timing, certainty, and having a lender that understands complex urban properties. This transaction highlights how flexible private financing can support a first-time building owner in a highly competitive market.
Overview of the Industrial Acquisition
This transaction was structured as a $1,700,000 industrial acquisition loan for the purchase of a 9,000 square foot, three story industrial building located in the Mission District of San Francisco, near the headquarters of OpenAI and Cash App.
The borrower had occupied the property for several years as a tenant and held a long-standing option to purchase the building. When the time came to exercise that option, speed and certainty of execution were essential.
This was the borrower’s first building purchase, making a reliable and efficient financing process especially important.
Property Use and Income Profile
The property consists of three functional levels that support both owner use and rental income.
The ground and basement levels are owner occupied and serve as the headquarters for the borrower’s renewable stove company. The business focuses on green energy solutions and sustainability, aligning well with the Mission District’s evolving industrial landscape.
The second floor is leased to an AI startup, providing stable rental income and strengthening the overall cash flow of the property.
This combination of owner occupancy and tenancy made the industrial acquisition both operationally efficient and financially sound.
Why Private Financing Was the Right Fit
Timing played a critical role in this acquisition. The borrower needed certainty of execution to meet the contractual deadlines tied to the purchase option. Traditional lenders were not well positioned to move quickly or accommodate the layered structure of the deal.
Introduced by a local mortgage broker, the borrower was connected with Rubicon Mortgage Fund, LLC, which was able to evaluate the asset efficiently and structure financing to support the full capital stack.
To complete the acquisition, a seller carry note was placed behind Rubicon’s loan, allowing the borrower to move forward while maintaining a reasonable cost basis.
Mission District Location Advantage
The Mission District remains one of San Francisco’s most desirable and active neighborhoods. Known for its mix of creative, industrial, and technology driven businesses, the area continues to attract strong tenant demand.
Being located near major technology headquarters further reinforces the long-term appeal of this submarket.
Acquiring an industrial property at a favorable cost basis in this area positions the borrower well for long term ownership and flexibility.
Exit Strategy
The planned exit strategy for this industrial acquisition is a refinance with another lender once the borrower has established ownership history and further stabilized the property.
This approach allows the borrower to transition into longer term financing while retaining a property that supports both business operations and rental income.
Supporting First Time Industrial Buyers
This transaction demonstrates how private lending can support first time buyers navigating complex industrial acquisition opportunities. With speed, certainty, and thoughtful structuring, private capital can bridge the gap between opportunity and ownership.
If you are exploring an industrial acquisition and need reliable execution in a competitive market, working with an experienced private lender can make all the difference.
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