iBorrow, a nationwide private direct lender for commercial real estate, has provided a $12.5 million dollar loan secured by four industrial warehouses in California, Arizona and Nevada, slated for conversion to multi-tenant commercial “ghost kitchen” facilities. The Properties comprise approximately 27,700 total rentable square feet and, once converted, will be sub-leased to tenants for use as Ghost Kitchens, which are increasingly the preferred choice of restaurants that are looking at ways to increase profitability and streamline operations.
Brian Good, iBorrow CEO, said, “Brick and mortar restaurants in cities with thriving lunch and dinner services have seen sales drop significantly as a result of the COVID-19 pandemic. To mitigate losses and increase margins, many restaurants are addressing their “back of house” expenses by locating them in a centralized offsite kitchen facility. These Ghost Kitchens enable restaurants to scale efficiently with lower expenses, in some cases, creating entirely new brands that live online. Also, many restaurant brands are partnering with large delivery companies like Door Dash and Uber Eats for online ordering, pickup, and delivery. These properties are suitable but older industrial buildings located in ideal locations, with really good bones. We are confident the borrower can execute their business plan and create value for these properties.”