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B R I D G E  L O A N

Bridge mortgage loan financing helps commercial property developers of pre-leased and speculative development to build new properties or the renovate and reposition existing properties. Most property types are considered. Loan structures, pricing, loan to cost ratios and recourse requirements are flexible and will be tailored to meet the needs and risk profiles of individual transactions.

Features of Bridge Loan Programs include:

• 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 can be structured with holdbacks for funding of all renovation and/or construction costs, tenant improvements, leasing commissions, and interest carry until stabilization.
• Maximum loans are typically 75% of the stabilized value funded upon achieving specified occupancy and NOI requirements.
• Loans are typically non-recourse, except for standard carve-outs.
• Quick closes available for time sensitive transactions 12-24 month interest only typical bridge term. Extension options available.
• Interest rate typically six month LIBOR plus margins of 3.0% to 4.0%.
• Permanent loan takeout option can be offered bridge loans with no additional fee.
• Debt service coverage is as low as 1.003