About this Property in Sacramento, CA: Business Growth Opportunity

Sacramento, CA — Retail Conversion + Business Expansion

Loan Amount: $2,385,000
Loan Type: Bridge Loan (Refinance + Working Capital for Launch)
Property Type: 9,960 sq ft retail building converted to restaurant
Use of Funds: Pay off existing debt on the new location, recoup a portion of invested equity, and provide working capital to open and support new location until established.

Overview

Enact Partners provided a commercial real estate bridge loan to support an experienced restaurant operator expanding into the Sacramento market. The borrower purchased the building in 2021 and invested approximately $2.5MM of personal capital to complete a high-capacity hotpot buildout. With renovations substantially complete and opening plans underway, Enact structured financing to return a portion of invested cash and supply the capital needed to launch operations.

Loan Structure

• Refinance: Paid off the existing first trust deed on the Sacramento property.
• Collateralization: First deed of trust on the subject property; additional support from second trust deeds on other borrower-owned assets.
• Payment Structure: Interest-only with a partial interest reserve to smooth initial cash flow.
• Term: 12 months with a clear path to refinance once stabilized.
• Takeout Strategy: Refinance into permanent financing; sale considered as a secondary option.

Business Expansion Focus

• Experienced Operator: Multi-location owner with a strong operating team and established systems.
• Use Readiness: Renovations largely complete; seating designed for high-volume service.
• Working Capital: Funds available for final improvements, staffing, and opening momentum.
• Positioning: Structure supports opening now, with transition to long-term bank debt after stabilization.

Outcome

The bridge loan retired existing debt on the new location and unlocked capital to finish and open. By leveraging the Sacramento asset and additional collateral from other properties, the borrower moved into a larger market without slowing the business plan. This project illustrates how bridge financing helps established companies use existing equity to expand with confidence.

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