Red Oak provided $8 million in financing on a nearly century-old asset in Downtown Sacramento. The borrower will use the funds to pay off outstanding debt and complete the space planning and permitting of the property. The loan was structured with a fixed note rate of 11.00% and a two-year term with two 6-month renewal options. The interest-only loan represents 33.47% of its “As-Stabilized” value of $23.90 million.

The single-story building is currently in shell condition and will be built out for the California Highway Patrol, which has signed a long-term lease for the space. Situated on 1.76 acres at 1300 U Street in the state capital’s downtown, the property consists of 47,456 square feet of net rentable area and provides surface parking for 77 vehicles.

The borrower is a partnership between Frank Kimball and Scott D. Greenberg, who are both successful entrepreneurs with significant expertise in commercial real estate development, investment and finance. The sponsors negotiated a long-term lease with the California Highway Patrol for the property, which is in the desirable Downtown Sacramento submarket.