Loan Type: Economic Development/CRE
Total Development Cost: $12,000,000
Times Leveraged: 12x
Loan at a Glance:
The loan is PCG Capital’s third loan in collaboration with Enterprise. The loan replaces and refinances a 2017 loan. The original source of repayment fell through due to COVID-19 related difficulties. This refinancing provided the project with more time to stabilize.
Project Summary:
The project provides office and manufacturing space to small businesses in the Medford neighborhood of Baltimore, which is targeted for redevelopment by the city. The 1954 136,797 SF former Sears warehouse building will be redeveloped as the home of Union Craft Brewing Company (UCBC) and eight other tenants; Seven of which are start-up businesses, with anchor Johns Hopkins University.
Borrower Summary:
The borrower is a single asset LLC formed in 2017. The members include UCBC co-founders and Seawall Development (Seawall) employees. Seawall is a well-known developer in the Baltimore area that specializes in neighborhood projects, including workforce housing and office space in distressed neighborhoods.
Loan Result:
PCG Capital has set a goal in its 5-year plan to expand its lending in the commercial real estate area beyond community facilities properties to projects that promote economic development and job creation. This project aligns with that goal. The food and beverage tenants provide accessible jobs for 270 people with room for future expansion. This project will redevelop a blighted area of the city and supports the city’s goal of revitalizing Medford.