The RRA Capital team financed the conversion of a vacant office building in Portland, Oregon, into a daycare facility.

RRA arranged a $6.2 million first-position secured loan and committed to subsequent follow-on funding, providing capital for tenant improvements and inducements. The project addresses the growing demand for daycare services in the area.

The property, constructed in Portland, Oregon in 1993, is a two-story, 10,200 square-foot office building. Before securing financing, the property remained vacant, presenting an excellent opportunity for redevelopment. RRA recognized the potential in repurposing the building to cater to the needs of the vibrant surrounding community.

As part of the lease agreement, the property was fully leased at closing, providing stability for the project. The tenant has committed to a 20-year lease term, incorporating annual rent escalations to ensure the financial viability of the venture. Once the property upgrades are completed and the daycare facility stabilizes, the sponsor plans to list the property for sale at $10 million as of July 2023.  

With a stable income-generating position and an established tenant, the sponsor will be well-positioned to maximize the property's value and capitalize on the demand for well-equipped daycare facilities in Portland.

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