Commercial Loans
We focus on providing commercial loans (senior debt bridge loans) on cash-flowing
properties, or value-add properties that our borrower will be able to
transform into cash-flowing properties that can later be sold or
refinanced by a bank. Our strong preference is always to provide senior
debt on cash-flowing properties, or properties that will or can readily
become cash-flowing.
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% 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
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
ELIGIBLE PROPERTY TYPES: Multifamily / Apartment buildings | Mixed-use properties | Commercial and retail co-ops and condominiums | Retail / Shopping Centers | Acquisitions of performing loans, defaulted loans or loan portfolios | Office buildings | Warehouse / Industrial | Self-storage | Net-leased | Owner-occupied | (No lending on certain West Coast regions)
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 meets underwriting criteria, we would consider loan opportunities 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.