Question 1

What is Castle Commerce Center, and why does it matter to a bridge borrower?

Accepted Answer

It is a county-owned freight and testing campus, and it is the largest commercial story in the county. The former Castle Air Force Base is a 1,912-acre multimodal freight transportation hub with an 11,800-foot runway, more than 60 tenants by the county's count, including the Transportation Research Center, Waymo and Patriot Rail. The county lists an Opportunity Zone designation, Foreign Trade Zone 226, an on-site Merced Irrigation District substation, and an adopted environmental report that it says removes the need for additional environmental review for projects at Castle. Whether a given parcel can be bought or only leased is a question for the county; we did not source Castle's land terms.

Question 2

What local assets does a Merced County bridge loan usually serve?

Accepted Answer

Industrial and flex space, and property tied to food processing. The state's major-employer list for Merced County names Foster Farms and Sensient Natural Ingredients in Livingston, Hilmar Cheese in Hilmar, Dole Packaged Foods in Atwater, and Liberty Packing in Los Banos, plus Malibu Boats, Fineline, Quad/Graphics and Scholle in the City of Merced. The list is vendor-compiled and has no headcounts. A bridge fits when an owner needs to reposition, lease up or stabilize before refinancing into permanent debt. We did not find county commercial vacancy, rent or cap-rate data, so we make no market claim beyond the structure.

Question 3

What City of Merced impact fees apply to a commercial project?

Accepted Answer

Retail pays $16,210, office $14,444 and industrial $6,279 per 1,000 square feet. Lodging pays $3,831 per room. These are the City of Merced's Public Facilities Impact Fees effective January 1, 2026, with the next update scheduled for January 1, 2027. They are paid at certificate of occupancy, and non-residential projects with more than $50,000 in fees may defer 75% over five years. The city also discounts the fee 50% in the central area and Opportunity Zones. These apply inside city limits; check the county's schedule for sites outside them, which we did not source.

Question 4

Can I underwrite a bridge exit around high-speed rail in downtown Merced?

Accepted Answer

No. The plan to put the station downtown is no longer the plan. The California High-Speed Rail Authority's June 2026 Business Plan relocates the Merced station from downtown to a site south of the city. The state Office of Inspector General wrote on July 31, 2026 that this is inconsistent with SB 198, which specifies a new station in downtown Merced, that the change needs a statute amendment, and that as of July 2026 the Authority had not put a proposal to the Legislature. Target completion for the Merced-Bakersfield segment is September 2032, with the Inspector General putting the risk window out to September 2034. Underwrite the exit on the property's own cash flow, not on a station.

Question 5

What does a Merced County commercial sale cost in transfer tax?

Accepted Answer

$1.10 per $1,000 of value, and we found no city add-on. The County Recorder states the documentary transfer tax as $0.55 per $500 of real property value, excluding any existing liens or encumbrances, collected at recording. On a $400,000 deed with no assumed lien that is $440; commercial sales will differ with the price and any loan the buyer assumes, so treat that as an illustration. The City of Merced is a charter city and could set its own rate, so confirm with your title company. Commercial reassessment follows Proposition 13: the base resets to the purchase price. Talk to your CPA.

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