Bridge Loan financing for the development of new commercial properties, or the renovation and repositioning of existing properties, for both pre-leased and speculative development.  All property types will be considered.  Loan structures, pricing, advance to cost ratios and recourse requirements are flexible and will be tailored to meet the needs and risk profiles of individual transactions. 


Bridge loans can be structured as short-term, interest-only loans with a possible exit into permanent financing.

USE OF LOAN: Proceeds may be used for land development, real estate acquisition, construction costs, equipment, working capital, closing costs or cash-out.

The bridge loan program includes the following provisions:

• Loan-to-cost of 75% to 85% (up to 100% on pre-leased projects)
• Loan-to-value of 75% on most property types; 65% on special purpose and hotels
• Loans structured with holdbacks for funding of all renovation and/or construction costs, tenant improvements, leasing commissions, and interest carry until stabilization, with monthly draws as costs are incurred
• Earn out of up to 75% of the stabilized value funded upon achieving specified occupancy and NOI hurdles
• Loans are typically non-recourse, except for standard carve-outs.  Speculative development projects will generally require completion and/or debt service guarantees 
• Quick closes available for time sensitive transactions 
• 12-24 month interest only bridge term, with extension options when appropriate 
• Pricing over six month LIBOR, with margins of 3.0% to 4.0%; upfront fee of 1%-1.5% 
• Permanent loan takeout option is offered with all bridge loans with no additional fee.  An exit fee of 1% is charged if the takeout is not elected.  The permanent loan program is described in greater detail below. 

Variable Rate Permanent Loan Program

Our variable rate term loan program offers a flexible, restriction free alternative to longer term fixed rate financing.  The program includes the following features:

• All property types considered, including those with unique risk characteristics such as ground leases, environmental and or structural issues, and tenant default risk
• Loan-to-value of 75% on most property types; 65% on special purpose and hotels 
• Minimum DCR of 1.20; 1.35 for special purpose and hotels
• Non-recourse except for standard carve-outs 
• Low or no prepayment penalty 
• Quick closes for time sensitive transactions 
• Secondary financing allowed 
• Earn out provisions - if your property has not yet reached its potential value, we offer earn out provisions which allow you to obtain additional loan funds as your property's value increases 
• Up to 5 year term 
• Amortization up to 25 years, 20 years on single tenant, special purpose and hotels
• Pricing over six month LIBOR, with margins of 3.0% to 3.75%; 1% upfront fee (no fee when offered as a bridge loan takeout option) 

Secondary Financing 
Secondary financing behind existing first trust deeds or mortgages on purchases or transactions requiring a new infusion of capital from the borrower.  These loans are always provided on a recourse basis, and include the following features: 

• Combined loan-to-value of up to 85% 
• Combined debt service coverage not less than 1.15:1.00 
• Fully amortizing over a 5 to 7 year term (consistent with the term of the first trust deed loan)

We have access to over 700 top USA lenders...below is just a sample

Sample Mezzanine Program
Mezzanine transactions as small as $750,000, a rarity among mezzanine lenders.

Equity/Mezzanine Loan Program

Equity/Mezzanine Loan Program Bridge Loans considered for providing equity financing in conjunction with select commercial projects.  Bridge loans are secured by a second trust deed or mortgage, and are subject to the following provisions:

Security
First mortgage lien on subject property. Additional credit enhancement (recourse, other collateral, letter of credit or other guarantees) to be determined

Back to Commercial or onto Investment Property Financing

For Commercial Mortgage industry...Important property finance info.
see our page on CMBS (Commercial Mortgage Backed Securities)
2nd mortgages not allowed...we show a way around this


see Mezzanine Loans ...for Commercial Mortgage Loan Financing
How to get a Junior Lien (similar to second mortgage)