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, 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.
- Commercial Loan Bridge Program $3 Million ($8 Million Min. - West Coast ) - No maximum.
The Bridge Loan Program is ideally suited for property repositionings, value-added transactions, temporary financing for pre-HUD take-out financing, and 1031's.
- ELIGIBLE PROPERTIES (most property types): Multifamily, Office, Retail, Hospitality, Industrial, Health Care, Self Storage, and Mixed Use . No land developments or construction.
- LOAN AMOUNT: $3,000,000 minimum - ($8 Million Minimum West Coast) - No maximum
- MINIMUM DSCR: 1.10x As-Is / 1.25x at Exit.
- MAXIMUM LTV: 90% As-Is / 80% at Exit.
- LOAN TERM: 1-3 years, extension options available.
- AMORTIZATION: Interest-only or Fixed.
- LENDER FEE: Origination and exit fees to be determined.
- TAX AND INSURANCE ESCROWS: Monthly deposits required.
- REPLACEMENT RESERVES: Monthly deposits required.
- REQUIRED REPORTS: Narrative MAI Appraisal, Property Condition Assessment and Phase I Environmental.
- PREPAYMENT: Generally permitted.
- SUBORDINATE FINANCING: Mezzanine debt may be provided by lender or an approved 3rd party lender.
- ELIGIBLE BORROWER: Single asset special purpose entity.
- No Land or Construction.
Click here for current bridge loan rates
- Apartment Loan Bridge Program $5-25 Million
The Agency Gateway Program is geared toward multifamily owners who don't currently qualify for Fannie Mae or Freddie Mac financing, but is part of the owners exit strategy. The program will give the borrower additional time to stabilize the property to meet agency guidelines.
- Floating-rate interest only loans between $5 million and $25 million
- Floating over 30-day LIBOR with a 2% LIBOR floor
- Spreads over LIBOR targeted between 300 bps and 450 bps
- 300 bps (65% LTV; going-in DSC of 1.10x, stabilized DSC of 1.50x)
- 450 bps (75% LTV; going-in DSC of 1.00x, stabilized DSC of 1.30x)
- 2% origination fee; $15,000 processing fee; 2% exit fee (portion of exit fee to be waived if agency take-out
is utilized by lender)
- Terms of 6 - 18 months; one six-month extension option available
- Spread for extension will be at market
- 1% extension fee
- Lock out period based on stabilization plan
- Minimum breakeven DSC at funding, 10% debt yield at stabilization
- Maximum LTC/LTV of 75%. Driven by Agency market specific requirements
- Recourse determined on a loan-by-loan basis; minimum 10%
- Agency quality Class B or better in strong markets
- Focus on major MSAs that exhibit or are poised to exhibit positive job growth over the near term
- 400 units or less
- Renovations and/or construction must be complete
- Experienced multifamily investor/owner with a strong knowledge of the local market
- SPE borrowing entities required
- No borrower structures involving tenants in common
- All standard agency third party reports required to close
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View Our Current Apartment Bridge Loan Interest Rates
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.