Case Study: Onate Finances Commercial Property Purchase in a Tipperary town
Onate takes pride in offering flexible financing solutions that help investors unlock the potential of their real estate investments.
In this case study, we outline the successful financing of a commercial property in a Tipperary town for €1,700,000. Onate provided a loan of €1,300,000, secured by the property being purchased and five residential investment properties valued at €800,000.
This strategic loan enabled the borrower to purchase the property and implement an asset management strategy to maximise its income. Upon completion of the strategy, the loan was refinanced with a long-term funding solution from another lender.
The borrower identified a great opportunity to acquire a commercial property in a regional town, priced at €1,700,000. With a clear plan to boost the property’s revenue through an asset management strategy, the borrower was well-positioned to maximise the property's value. However, they needed immediate financing to secure the deal without the property’s income being fully stabilised.
To facilitate this acquisition, Onate provided a €1,300,000 loan, helping the borrower close the purchase. Additionally, five residential investment properties, with a combined value of €800,000, were offered as security, allowing Onate to structure the loan in a way that worked for both parties.
Following the successful purchase, the borrower was able to move forward with their planned asset management strategy, designed to maximise the commercial property’s income potential. Key actions taken during this phase included:
Lease Optimisation: The borrower renegotiated and optimised existing lease agreements to increase rental income and create longer-term tenancies, boosting overall stability
Tenant Improvements: The borrower invested in minor renovations and improvements to attract new tenants for vacant units, resulting in increased occupancy rates and higher rent per square metre
Revenue Diversification: They also diversified the tenant mix, bringing in a range of tenants that complemented each other and added long-term value to the property. They were no longer reliant on one of the larger tenants for the majority of the rental income.
After the asset management strategy was successfully implemented, the property’s income-generating capacity significantly improved. With these enhanced cash flows in place, the borrower was able to refinance the loan with a different lender, securing a long-term funding solution.
Onate’s financing solutions played a pivotal role in enabling this borrower to capitalise on a prime investment opportunity. By advancing €1,300,000 and structuring the loan with additional security from residential properties, Onate helped the borrower secure and enhance a commercial asset, ultimately leading to a successful refinancing with another funder.
This case exemplifies Onate’s commitment to providing tailored financial products that meet the specific needs of real estate investors, empowering them to maximise value and achieve long-term success.
If you're ready to explore new opportunities and need a financial partner who can rise to the challenge, contact Onate now John Ring | john@onate.com | 0878305276, Michael Gavin | michael@onate.com | 0851454200 or Niall Hurson | niall@onate.com 083 800 0227
