crenews.com

When bids came in 10 percent below its asking price for a Tampa, Fla., office building, Blumberg Capital Partners stirred the process by offering gap financing.

The Coral Gables, Fla., firm eventually got the property under contract for the full asking price after it had provided the buyer 15 percent financing for the transaction.

According to Philip Blumberg, chief executive officer, the buyer had been hoping to line up 90 percent financing, but was only able to line up a loan totaling 75 percent of the purchase price due to the tightened credit markets. “We had to step in to make up the difference,” he said.

He said the three-year loan with an 8 percent fixed rate is being funded by his firm, which owns the office building.

“It’s not like we’re taking an unknown risk, we already know the underlying asset because we own it,” he said.

He declined to provide specifics on the transaction because it has not closed yet.