How a Foreign National Operator Closed a $3M Cold Storage Refinance During a Partnership Dispute and Mechanic's Lien
Sources: Small-Balance Commercial Refinance — PeerSense, Asset-Based Lending Hub
How did PeerSense solve this scenario?
Partnership dispute + lien resolved at close, refi at conservative LTV. A foreign national operating company building a 188,000-square-foot cold storage facility in a rural Pacific Northwest agricultural community. PeerSense placed the deal into cold storage bridge with conservative leverage, asset-based underwriting, and fast execution. Composite case study based on the deals we close every month.
— PeerSense Composite Case Study · 2026-05-01
At a glance
| Loan size | $3.0M cash-out refinance |
| Property type | 188,000 SF cold storage facility (under construction) |
| Borrower | Foreign national operating company |
| Market | Rural Pacific Northwest agricultural region |
| Term | 24-month bridge with extension |
| Complications | Partnership dispute, mechanic's lien, foreign national identity, construction-in-progress |
| Use of proceeds | Senior debt payoff + lien cure + completion capital |
The borrower
A foreign national operating company building a 188,000-square-foot cold storage facility in a rural Pacific Northwest agricultural community. The facility was designed to serve regional fruit and vegetable producers — a critical link in the cold chain for fresh produce moving from farm to packer to distributor to retailer.
The principals had two decades of experience in cold storage operations in their home country. The facility was 80% complete when they hit a wall: a partnership dispute with their original development partner triggered a cascade of issues, including a mechanic's lien from a contractor whose payment had been held up during the dispute. Their original construction lender had not yet funded the final draws, and the financial mess had pushed the deal outside the original lender's comfort zone.
Why traditional financing said no
Three separate problems, any one of which would've stopped a conventional bank:
- Foreign national borrower — no US credit history, no SSN, complex international ownership structure
- Mechanic's lien on title — most banks won't lend with an unresolved lien in place
- Construction-in-progress — non-income-producing asset, partially built, with no operating track record
The combination of all three put the deal completely outside the bank channel. Conventional construction lenders declined. Specialty agricultural lenders declined. SBA wasn't an option because the borrower wasn't a US person.
How PeerSense solved it
We placed the deal into a specialty asset-based bridge program in our network that handles foreign national, distressed-position, and non-traditional collateral situations. This is the high-end of the network — fewer lenders, more underwriting expertise, more comfort with complexity.
The structure:
- $3.0M cash-out refinance bridge sized to a conservative LTV against the as-completed appraised value
- 24-month interest-only term with 12-month extension option
- Use of proceeds:
- - ~$1.85M — payoff of senior construction lender (clean exit, no extension request)
- - ~$340K — mechanic's lien payoff at close (cures the title issue)
- - ~$520K — completion capital for final 20% of construction
- - ~$180K — interest reserve for first 9 months
- - ~$110K — closing costs and origination
What made the deal close where banks couldn't:
- Asset-based underwriting — the lender focused on the appraised as-completed value of the facility, not the borrower's US credit
- Foreign national acceptance — the lender's program explicitly underwrites foreign borrowers with conservative LTV
- Lien cure as use of proceeds — paying off the mechanic's lien at closing solved the title problem cleanly
- Construction-completion structure — final draws funded against inspections, not all at close
- Clear exit story — once stabilized, the facility becomes financeable through agricultural specialty lenders or USDA B&I programs
The outcome
- Mechanic's lien cured at close — title cleaned up, partnership dispute settled with payoffs from the cash-out proceeds
- Construction completed by month 7 with the financed completion capital
- Lease-up began in month 8 with regional fruit and vegetable producers
- Stabilized at ~85% utilization by month 18
- Exit plan: USDA B&I or specialty agricultural lender refinance at month 22-30
Frequently asked questions
Can a foreign national operator finance a cold storage facility?+
Yes. Specialty asset-based bridge programs accept foreign national borrowers for cold storage, agricultural storage, food processing, and similar industrial property types — typically at conservative LTV (50-65%) with no US credit required.
Can I refinance a property with a mechanic's lien on title?+
Yes — when the mechanic's lien is being paid off at closing as part of the use of proceeds. Most lenders will fund the lien cure directly to the lien holder at close, ensuring the title is clean once the loan funds.
What about a partnership dispute?+
Bridge lenders in our network have experience working through partnership disputes when the resolution is part of the closing structure. The cash-out proceeds can fund a partner buyout, and the closing is the moment when the entity structure is reorganized.
Can the bridge fund completion of construction?+
Yes — completion capital is a common use of proceeds when the property is 60-90% complete. Funds are typically held in escrow and disbursed against inspected progress.
What LTV can I expect on cold storage?+
Typically 55-70% LTV. Cold storage is well-understood as an asset class, but the specialty equipment (refrigeration, racking, dock systems) gets discounted in conservative appraisals.
What's the typical exit on a cold storage bridge?+
USDA Business & Industry (B&I) program loans, specialty agricultural lender financing, or conventional industrial real estate financing once the facility is stabilized and operating.
Why is rural Pacific Northwest a good market for cold storage?+
The region is a major producer of apples, pears, berries, and other crops that depend on cold chain infrastructure. Demand for storage capacity outpaces supply in many submarkets, making well-located facilities defensible long-term assets.
Can I get this kind of loan if my home country has limited banking transparency?+
It depends. Lenders that handle foreign national deals have established protocols for working with international borrowers, but jurisdictions on AML/sanctions watch lists may be excluded. We pre-qualify each scenario. ---
Have a similar scenario?
Composite case studies based on the deals we close every month. PeerSense routes to the right program + lender.
Composite case study. Names, locations, identifying details, and dollar amounts modified to protect borrower privacy. Actual rates and terms vary by borrower, property, and market conditions. PeerSense is a capital advisory firm and does not directly originate loans.