Loan Amount: $350,000

Loan Term: 12 Months

LTV: 40%

Loan Position: First Position Deed of Trust

How a Private Lender Helped Refinance a Family-Owned Grocery Store in San Francisco

Finding the right partner can make all the difference when it comes to navigating the challenges of commercial real estate financing. Recently, Rubicon Mortgage Fund stepped in as a trusted private lender to provide a $350,000 refinance loan for a long-standing grocery store located on Mission Street in San Francisco, California. This deal highlights how private lenders can offer tailored solutions when traditional banks fall short.

The Challenge: Traditional Financing No Longer an Option
For over 40 years, this family-owned grocery store has been a cornerstone of the Mission Street community. Surrounded by well-known establishments and benefiting from a prime location, the business has thrived for decades. However, when the time came to refinance their existing debt, the property’s asset class became an obstacle. The bank—citing a shift in their lending priorities—was unwilling to continue financing the loan.
This left the family in a difficult position, as they needed a solution not only to refinance their debt but also to restructure the property’s ownership and partnership agreements.

The Solution: A Private Lender Steps In
Rubicon Mortgage Fund stepped in to provide the $350,000 refinance loan, offering the family the flexibility and speed they needed. As a private lender, Rubicon was able to look beyond the asset class—focusing instead on the property’s value, the borrower’s vision, and the grocery store’s longstanding success.

This loan allowed the family to:

• Restructure Ownership: The refinance enabled them to streamline their partnership, removing certain stakeholders to ensure smoother operations moving forward.
• Preserve Their Legacy: By securing private financing, the family was able to maintain ownership of their property and continue serving the community.
• Position for the Future: With a clear exit strategy to return to bank financing in the future, the family is well-positioned to transition back to traditional lending once the restructuring is complete.

The Value of Private Lending
Private lending offers a unique advantage for situations like this. Unlike traditional banks, private lenders are not confined by rigid underwriting standards. Instead, they can focus on the bigger picture, including the borrower’s goals and the potential of the property.
In this case, Rubicon’s ability to act quickly and provide a customized solution ensured that the family’s property—and their business—remained intact. This type of flexibility is a hallmark of private lending and is why so many borrowers turn to private lenders when traditional financing options fall short.

Mission Street: A Prime Location
Mission Street is one of San Francisco’s most vibrant corridors, known for its diverse culture, thriving businesses, and deep-rooted community ties. The grocery store’s location surrounded by established businesses further underscores its value as an essential part of the neighborhood.

The Exit Strategy: Returning to Bank Financing
The borrower’s long-term plan is to return to bank financing once their partnership restructuring is complete. With the property’s prime location and the grocery store’s solid reputation, the family is confident in their ability to transition back to traditional lending, further solidifying their business’s future.

Conclusion
This $350,000 refinance is a testament to the crucial role private lenders play in supporting businesses and property owners when traditional financing is no longer an option. For this family-owned grocery store, Rubicon Mortgage Fund provided more than just a loan—we provided a lifeline to help them preserve their legacy, restructure their partnership, and secure their future.

If you’re facing challenges with traditional financing, a private lender like Rubicon Mortgage Fund can offer the flexibility and personalized solutions you need to achieve your goals.