Mandri Capital continues to successfully close loans on specialty property types in Southern California and nationwide. This includes closing four bridge and construction financings on music studios and rehearsal spaces for locally-based developer clients.

A deep dive into the industry and the tenant profile are critical factors when approaching specialized property deals – in order to proactively identify the questions that lenders will need answered, as well as, the roadmap to getting the loans closed and funded.

Three keys to ensuring these deals were successful:

Validate and Quantify Tenant Demand:

Tenant demand studies vary from deal to deal, but successful studies utilize creative ways to validate current demand. In this case, we completed a rigorous market study of the comparable properties, as well as, confirmed waiting lists at various rehearsal studio facilities.

Organize Specialists for the Build Out:

When pitching development projects to capital providers and funds, it’s essential to highlight construction expertise (and the availability of subs) to meet the target tenant’s expectations.

For our recent financing of music studios and rehearsal spaces, it was critical to represent that an experienced construction team was on board, and the use of the highest quality materials to produce an end-product that would meet the demands of producers and musicians accustomed to the highest level of quality and style.

Establish a Customized Management and Marketing Approach:

Understand if your leasing, management, and marketing teams benefit from being generalists or specialists.

Property leasing and property management for these specialized properties require a high-touch approach and industry knowledge to market the property for lease and communicate the advantages (technical and otherwise) of the space being offered. In our financings to date, the sponsors were industry veterans with a deep network of contacts.

The due diligence and upfront work to establish credibility and market viability for these projects is critical. Due to the comprehensive vision of our client, we were able to work efficiently and utilize the project’s strengths to expedite the deals.

Surrounding yourself with the right team, from advisors to construction teams, to experienced management and marketing teams, is critical to bring your vision to fruition.

If Mandri can assist in bringing your commercial real estate development vision to life, email for a confidential discussion at mfriedman@mandricapital.com.