BRIDGE LOANS

Bridge Loans | Commercial Real Estate

Bridge Loans. We offer a straightforward bridge financing facility (acquisition, refinance, new construction) to well-seasoned real estate developers and commercial real estate investors.

The bridge loan based on their business plan is ideal for Borrowers to accomplish their immediate goals, they must have an exit either upon the sale of the property or by refinancing the loan with a bank or other type lender. We consider most income-producing commercial properties as an investment or owner-occupied commercial real estate.

PROPERTIES INCLUDE
Apartment buildings / Multifamily
Assisted living facilities
Flagged hotels
Hospitals
Industrial properties
Office buildings
Residential developments
Self storage
Shopping / retail centers
Among others

LOAN AMOUNTS: $5,000,000 to $50,000,000 (Loans outside this range are welcome by a strategic partner)

LOAN TERM: While the most typical loan term is one year, loans have been originated with terms ranging from six months to five years

MINIMUM DSCR: Case by Case

LOAN TO VALUE: Typically up to 75%-80% loan to value on first mortgages - to be determined on a case-by-case basis

MEZZANINE/SECOND MORTGAGES: Mezzanine and second mortgage loans will only be considered on cash-flowing properties for strong sponsors with real expertise, net worth, liquidity and meaningful guarantees

INTEREST RATE: Case by Case (As low as 7% and 9.75%)

PREPAYMENT: Loans typically have no prepayment penalty after a short lockout period

POINTS: Typically 3%. In some cases part of the origination fee may be structured as an exit fee (deferred until the loan is repaid)

RECOURSE: Most loans are structured with full recourse

PAYMENT RESERVES: Depending upon the type of loan request, the nature of the business plan and the financial strength of the Sponsor, a loan may be structured with an Interest Reserve to cover a portion of the monthly interest payments

EXIT: Borrower must have a viable business plan and exit strategy

ELIGIBLE BORROWER: Single Asset Entity

SPONSORSHIP: Our borrower must have a viable business plan and exit strategy along with relevant track record and experience, net worth and liquidity

LENDING REGION: While the majority of the commercial bridge loans originated are in the Eastern US, if a loan outside our region meets underwriting criteria, we will refer it to a lending partner that can consider loans in primary markets nationwide

TAX AND INSURANCE ESCROWS: Case by Case

REPLACEMENT RESERVES: Case by Case

SECURITY: First mortgage lien on subject property with personal guarantees. (Additional credit enhancement such other collateral or letter of credit to be determined)

THIRD-PARTY REPORTS: Normal third-party reports for the project/property type. In some cases we can work off existing reports if it meets certain requirements

IMPORTANT: This is not an offer to make a loan, all requests are subject to normal due-diligence and final approval under conditions that are standard for the specific transaction. The above terms and conditions are subject to change without prior notice and other terms and conditions apply.