About this Property in Palm Springs, CA

The Enact Team was approached by a reliable private lender (Innovative Capital), whom they had worked with on previous loans. The lender proposed we participate in a bridge loan with them and a current borrower to convert two non-operational hotels located in downtown Palm Springs into a rehabilitation facility. This project had been in progress for 18 months, and more phases were yet to come. Once the construction work is complete, and the facility starts to house patients, the borrower will seek permanent financing. The motels were purchased over ten years ago, but at the time, they were not operational for hospitality services. The company planned to open the facilities two years after acquiring them, but they were unable to secure funding beyond internal fundraising to carry out the intended renovations. After pausing for a few years, the company aligned with key members to organize and facilitate this large project. They then approached our lending partners for financing, who provided funding for the first two phases of the project. For the third phase, Enact was thrilled to take on the challenge of bringing this dream to reality, even though the project was mid-construction, and there were inherent risks in lending on such a property. Enact Partners participated in the loan 50/50 with a lending partner (Innovative Capital).