Short-Term Bridge Mortgage Lending Program – Vacant and Land

Minimum $2,000,000

Short-term first mortgage loans on most commercial real estate properties with the following rates and terms:

Eligible Locations:Continental US (No Hawaii, Alaska, Islands, Caribbean, Canada, etc.)
Eligible Properties:Land: raw, entitled, permitted, subdivided, agricultural

Vacant retail, office, apartments and more needing lease-up

Completion of construction when substantially completed (exclude ground-up)

Conversions and change of use (exclude condo conversions)

Eligible Transactions:Acquisition or refinance; debt buy downs; D-I-P, BK, other troubled transactions.. A good credit score helps reduce rate but we will look at sponsors with lower scores.
Transaction Size:$2 million to $25 million.
LTV-LTC:Up to 50% of lesser of “As Is” market value, actual purchase price or total project costs.
Security:First mortgage lien on the subject property(s), assignment of all permits and approvals, assignment of leases, pledge of ownership/partnership interests, UCC on other collateral. In most cases, an additional income-producing commercial property is also required, where a subordinate lien can be filed, which income supplements the existing cash flow.
Ownership:Single asset, special purpose entity.
Application fee:Fee of $3,000 is due with the accepted and signed Letter of Intent.
Origination Fee:4-7% of loan amount payable at closing, depending on transaction.
Commitment Deposit1% deposit payable upon acceptance of Loan Commitment to be used for 3rd party costs, legal and closing. Balance applied towards Origination Fee or fully refunded at closing.
Exit Fee:Negotiable
Partial Releases:Releases for sold units at to-be-negotiated release prices.
Prepayment:Prepayment permitted but 6 months interest guarantee
Interest Rate:13% up to 16% interest only
DSC:n/a.
Loan Term:12-24-36 months; options negotiable.
Recourse:Full personal recourse to anyone with 10% or greater interest in Ownership
Reserves:
Real estate taxes, hazard insurance, and mortgage interest will be required.
Second Mortgage:Possible with permission of Lender and consolidated DSC.
Exit Strategy:Heavy concentration on value creation, market analysis and exit strategy.
Third Party Reports & Valuation :No traditional appraisal required. Valuation is from in-house as-is value using market sale info. Existing appraisal helps. Phase I environmental, property condition, possibly feasibility and others if required, ordered by Lender at expense of Borrower.
 

Closing Time:

As short as 1 week based on complete file. 3-4 weeks for routine transactions.

At no charge, a detailed loan offer will be forwarded upon completion of initial analysis.