Bridge Loans - Commercial Real Estate & Apartments
Commercial Loan Direct offers interim financing or bridge loans on commercial properties including; Multifamily, Office, Industrial, Retail, Self Storage, Assisted Living-Congregate, Manufactured Housing (Mobile Home Parks), Hotel/Motel, Special Use (most commercial properties with the exception of outlet malls and land). Commercial Loan Direct's quick turnaround allows the borrower to close in a shorter time frame than otherwise required for traditional permanent loans. Bridge financing gives owners the flexibility they need to reposition and stabilize properties. Commercial Loan Direct’s conventional loan programs can provide permanent financing upon stabilization, creating a seamless exit strategy.
- Loan Amount: $2 Million - $10 Million
- Markets: Nationwide major MSA’s in cities with 50K populations
- Property Types: Office, Industrial, Multifamily, Retail, Self Storage, Assisted Living/Congregate, Manufactured Housing (Mobile Home Parks), Hotel/Motel, Special Use, etc.
- Maturity: Borrower must have a clear exit strategy
- Term: 12 to 36 months
- Pricing: Prime Plus 2.75%
- Floor Rate: 7.50% interest only
- Origination fee: 2% paid at closing
- Max LTV: up to 90% with a DSCR of > 1.40 or 70% LTV with minimum DSCR of 1.00
- Propery Value: Determined by MAI certified appraisal
- Existing hospitality: max 50% LTV
- Occupancy: No minimum if property's DSCR > 1.40. Otherwise, 70% occupancy minimum at DSCR >= 1.00
- Exit Strategy: Must underwrite to current conventional refinance guidelines at inception or at exit
- Sponsorship: Good overall credit with > 20% liquidity of the loan amount request pre-closing (cash and/or marketable securities)
- Close Time: 30 - 45 days
- Security: First mortgage lien on subject property. Additional credit enhancement (recourse, other collateral, letter of credit or other guarantees) to be determined.
- Required Reports: Appraisal, Property Condition Assessment, and Phase I
- Prepayment: Generally permitted
In its prequalifying review, Commercial Loan Direct will attempt to estimate both the loan amount and the fees and costs associated with the transaction. Actual loan amounts and actual fees and expenses may vary from the prequalifying estimates. A prequalifying estimate is not a commitment to make a loan.