$300,000 Refinance in Benicia, CA
Restaurant Refinance Helps Family-Owned Mexican Eatery Secure Prime Location in Benicia
Loan Amount: $300,000
Loan Term: 24 Months
LTV: Under 60%
Lien Position: 1st Deed of Trust
For many restaurant owners, securing the right location can mean the difference between surviving and thriving. Recently, Rubicon Mortgage Fund, LLC closed a $300,000 restaurant refinance for a 1,000 square foot retail building in Benicia, California. The property will soon be the new home of a popular Mexican restaurant operated by two entrepreneurial brothers with years of experience in the food industry.
From Vacant Building to Fully Equipped Restaurant Space
The brothers originally purchased the property while it was vacant, seeing its potential as a future restaurant site. They invested heavily in renovations, including building out a professional kitchen and upgrading the space to meet all code requirements. However, one hurdle slowed their plans: the City of Benicia took much longer than expected to approve the fire permit.
With the property sitting idle during the approval process, the owners continued running their two restaurant locations. In total, they had three properties involved, including the newly purchased Benicia site. As the lease for one restaurantâs current location was coming to an end, they saw the perfect opportunity to move that operation into the Benicia property they already owned. This change allows them to consolidate their business into two restaurant locations and eliminate the cost of leasing space from an outside landlord.
Why a Restaurant Refinance Was the Right Move
The original loan on the Benicia property was approaching maturity, prompting the owners to refinance. This was an owner-user deal, meaning the borrowers will operate their own business in the space rather than lease it to someone else. While a conventional loan might have been their first choice, it was not an option at the time because the restaurant had not yet opened at the new location and there was no revenue history for this site.
Rubicon Mortgage Fund, LLC stepped in to provide a short-term restaurant refinance, allowing the brothers to pay off their existing note and position themselves for a future conventional loan once the restaurant is fully operational. The exit strategy is clear: once revenue from the Benicia location is established, the borrowers plan to refinance again with traditional bank financing
A Prime Spot for a Local Favorite
The Benicia property offers several advantages that make it an ideal site for a busy restaurant. Located on a highly visible street with steady traffic, it is easy for customers to find. The lot size of 0.16 acres allows for customer parking, a rare benefit in many restaurant districts. With the new location, the brothers can control their own real estate, build equity, and avoid the uncertainty that comes with leasing.
By moving into a property they own, they are creating stability for their business and protecting themselves from future rent increases. For a family-run restaurant, this kind of long-term security is invaluable.
If you are a restaurant owner facing a maturing loan or planning a move to a property you own, contact Rubicon Mortgage Fund today to learn how a restaurant refinance can work for you.
Supporting Local Business Growth
This transaction is a perfect example of how private lending can support small business owners who are in a period of transition. While banks often require a lengthy operating history at a specific location, private lenders can look at the bigger picture, including the experience of the owners, the quality of the location, and the overall business plan.
Thinking about expanding or relocating your restaurant? A restaurant refinance could be the bridge you need until conventional financing is available.
At Rubicon Mortgage Fund, we understand the challenges and opportunities restaurant owners face. Whether you are renovating, consolidating, or relocating, our flexible lending approach can help you move forward with confidence.
Contact Rubicon Mortgage Fund to discuss your restaurant refinance needs and take the next step toward owning your success.
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