NEED Lending for Net Leased Government Property

[Richard Corley]

Hey BP members,

Need advice/guidance on the best lender for my situation. 

I acquired a commercial office property in Tennessee with a 7 year lease commitment from the State of TN government. This is a single tenant building that will be completely occupied by the State . Now that the design process is done, I am needing to build the space out per their construction drawings. The need is for approximately 250k to fully construct the space per their design requirements. Being that the property was acquired for 350k and was appraised for 700k (stabilized value), I believe that a construction loan should be feasible. The conventional bank that I used to acquire the property is unwilling to fund the construction of the space since they have reached the limit on loan to cost. How can I find a bridge lender who is willing to provide a construction loan and be in the second lien position? I have called multiple companies and most either don't do junior loans for such a small amount or want to be in the first lien position.

Any help is greatly appreciated!