Why This CRE Senior Bridge Lender Stands Out
As traditional lenders tighten their criteria, an exceptional capital source stands out for its ability to deliver rapid, reliable financing solutions tailored to value-add and opportunistic opportunities. This CRE senior bridge lender excels in providing the agility and service required by many CRE sponsors in challenging market conditions. This lender’s unique value proposition is highlighted by its capacity to close deals swiftly—often within 15 days, with an average closing process of 3-4 weeks.
Tailored Financing Solutions
This capital source offers a range of flexible options to meet diverse borrower needs:
- Loan Sizes: $5 million to $75 million
- Leverage: Up to 75% LTV
- Terms: 12-36 months with flexible extension options
- Pricing: Starting at SOFR + 450 basis points
- Fees: 1% origination fee with no exit fee
- Recourse: Case-by-case basis, offering full recourse, non-recourse, and creative options in between
Diverse Property Types and Transaction Scenarios
The lender is actively pursuing opportunities across various property types, including multifamily, condo, mixed-use, retail, industrial/warehouse, hospitality, and DPOs. They are geographically agnostic, focusing on the strength of the deal rather than location constraints. Their expertise spans a wide range of transaction types:
- Fresh acquisitions
- Distressed/discounted payoffs
- Cash-out refinances or refinances in pre-stabilization with earnout options
- Light and heavy value-add projects
- Construction completion and lease-up bridge scenarios
- Other “un-bankable” situations
Bridge-to-Bridge Expertise
One of the significant advantages of working with this capital source is their comfort with bridge-to-bridge scenarios. They understand the challenges faced by sponsors when initial bridge loans mature in a challenging market. In these types of scenarios this lender is honed in on finding sponsors whose conviction in their deal is demonstrated by a combination of fresh cash equity investment, a refined business plan, and a clear understanding of past challenges along with a strategic approach to address them. Additionally, presenting a comprehensive underwriting model with data-driven assumptions enhances the lender’s confidence in the project’s potential for success. This holistic view ensures alignment between both parties in their vision for the property’s turnaround and long-term growth.
Conclusion
In the complex world of CRE financing, this senior bridge lender’s robust financing solutions are designed for experienced sponsors with strong opportunities across various property types and markets throughout the United States. In a market where timing is critical and conventional financing options may be limited, partnering with a flexible and responsive bridge lender can make the difference between seizing an opportunity and missing out.
This lender’s track record of closing complex deals quickly and their willingness to consider a wide range of scenarios position them as a go-to source for sponsors looking to execute on their investment strategies in today’s challenging market.
| Capital Structure | Senior Bridge Debt |
| Geography | Will consider Primary, Secondary & Tertiary markets in all 50 US states. Lower probability of interest in AL; LA; MS. |
| Property Types | Multifamily; Condo; Mixed-Use; Industrial; Retail; Hospitality. |
| Uses of Capital | Acquisitions, Discounted/Distressed Note Payoffs, Cash-Out/Earnout Refinances, rehab, construction completion, and other situations that are time sensitive or otherwise un-bankable |
| Sponsorship | They are looking for sponsors who have a track record of success with the types of deals they are actively pursuing. That said, they are comfortable working with entrepreneurial sponsors without an institutional background. They are holistic when looking at sponsorship, so a lot of the sponsor experience requirement is dictated by the investment type, location, deal parameters, etc. |
| Recourse | Most loans are non-recourse. There are carry guarantees. CapEx completion guarantees. Generally, there is a range of options, and this lender is creative in determining a reasonable solution. |
| Check Size | $5MM to $75MM |
| Loan to Cost / Loan to Value | Usually up to 80%. More focused on stabilized LTV (<75%) and debt yield (8.5%<). |
| Sponsorship Equity Contribution | Sponsor must have cash equity invested. Ability to write a 10-20% (of total cost) check (flexibility on a deal-by-deal basis). |
| Interest Rate / Returns | SOFR + 450 to 700 |
| Fees | 1 in, 0 out, typically |
| Term | 1-3 years, with flexible extension options |
| Underwriting Requirements (Based on Investor’s UW) | Minimum last dollar stabilized debt yield = 8.5% |
| Collateral Requirements | First Mortgage Lien |
| Deposits | Market standard deposit required upon signing of term sheet to fund appraisal, environmental, title, legal. Deposits are subject to deal size. (typical range: $35k-45k) |
| Closing Time Frame | Can close 15 days, typically 3-4 weeks. |
| 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 Shifting Sands of Multifamily Investments: Navigating Vintage Preferences in CRE