The year end sprint to close has begun for many sponsors. With the volatility of capital markets remaining at a high level, and significant delays in agency financing uncertainty of closing on capital facilities by year end is on many sponsors’ minds.
Highlighted in this blog is a capital source that offers quick closing, flexible financing solutions for value-add multifamily, industrial and retail opportunities. This prominent lender is offering competitive bridge capital that caters to the unique needs of value driven sponsors primarily in the Southeast, Northeast, and Midwest.
Advantages for Sponsors
The prominent features of this lenders bridge capital can be found highlighted below:
- Quick Closings: This lender’s process enables rapid execution, crucial for time-sensitive opportunities. Investors can expect to receive a term sheet within a week and close the deal within 3 weeks post-term sheet.
- Competitive Pricing: With rates ranging from SOFR + 385 – 550, the program offers attractive pricing for bridge financing.
- Higher Leverage: LTC up to 80% allow investors to maximize their purchasing power and preserve capital for improvements.
- Minimal Prepayment Restrictions: The program’s borrower-friendly prepayment structure provides flexibility for early refinancing or exit strategies.
Ideal Scenarios
This bridge financing solution is well-suited for sponsors looking to:
- Acquiring properties with value-add potential
- Reposition underperforming assets
- Bridge to permanent financing after stabilization
- Execute light to moderate renovation strategies
- Capitalize on time-sensitive opportunities
Market Impact
By offering quick-closing bridge capital with flexible terms, this lender addresses a critical need in the capital markets at this time of year. For sponsors seeking agile financing solutions with competitive terms, this bridge capital program presents a compelling option to fuel their investment strategies and portfolio growth.
| Capital Structure | Senior bridge debt |
| Geography | Nationwide with a focus on the Southeast, Midwest, and Northeast |
| Property Types | multifamily, industrial, and retail |
| Construction | Light and heavy value-add |
| Sponsorship | This fund prefers to work with experienced sponsors with a track record of completing similar projects. |
| Recourse | Full recourse, limited recourse, and non recourse options are available subject to leverage. |
| Check Size | $7MM to $50MM |
| Loan to Cost / Loan to Value | 70% to 80% LTC. Primarily focused on stabilized LTV and debt yield. |
| Interest Rate | SOFR + 385-550 |
| Fees | 1 point in, 1 point out |
| Term | 12-36 Months |
| Collateral Requirement | First Mortgage |
| Deposits | Market standard deposit required upon signing of term sheet. Deposits are subject to deal size. |
| Closing Time Frame | Ability to close inside of 3 weeks, typically 3-4 weeks. (from signing TS) |
| Approval Process |
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If this capital source may be of interest, book a call to discuss a potential capital arrangement. Read our last Market Insight: The Hidden Costs of Non-Recourse Financing: A Closer Look at CRE Loan Structure