Avatar Financial Group provides $6.3 million bridge loan for 365,000 s/f industrial property

Webster, NY Avatar Financial Group LLC (Avatar) has provided a $6.3 million bridge loan against a debt-free industrial property in the eastern Rochester suburb, whose owner is also one of its three tenants. The two-year, first-lien loan was originated at 25% loan-to-value.

The sponsor manufactures cooling systems manufacturing for data centers and AI environments out of part of the building. The cash-out proceeds fund working capital and growth capital for that business, along with planned roof improvements to the main building. The sponsor plans to ultimately refinance Avatar’s loan with a traditional lender.

“Most banks would treat a request like this as two separate conversations, one about the building and one about the business,” said T.R. Hazelrigg IV, Avatar’s president and co-founder. “The sponsor wasn’t fixing a problem with the real estate. He owned it outright, it was fully leased, and he wanted to put that equity behind his operating company. At 25% leverage, that’s a straightforward decision.”

The 365,500 s/f property is on more than 44 acres at 855 Publishers Pkwy. The sponsor’s business occupies 20% of the space, with the rest leased to an advanced automation and robotics company and a full-service gym. Built in 1980, the facility features 16-ft. clear height, six loading doors, 30% office space and 300 surface parking spaces. Capital improvements completed in 2024 and 2025 included cooling-tower maintenance and transformer repairs.

Rochester’s industrial fundamentals remain sound despite some negative net absorption in the first half of 2026 largely attributable to specific tenant relocations rather than weakening demand. Overall vacancy stood at 7.2% at midyear, though the suburban submarket that includes Webster was tighter at 6.1%, and no industrial space was under construction anywhere in the market, according to a Cushman & Wakefield report. 

Advanced manufacturing continues to anchor regional investment, including Kodak’s $20 million facility at Eastman Business Park and Sydor Optics’ planned 100,000 s/f building.