Bridge Loans for Multifamily Properties

Bayport Funding, a balance sheet lender, funded a $1,100,000 1st lien position bridge loan for the acquisition of an 11-unit multifamily property in the Harlem neighborhood of Manhattan, New York. We funded 60% of the $2,000,000 purchase price, while the Borrower contributed 40% cash at closing. All 11 apartments in the building were vacant and in fair condition. The plan is to rehab all the units, lease up the entire building, and then refinance with a conventional loan. The Borrower is a repeat client of ours who had good credit, lots of liquidity, and a strong track record.  They will use their own cash to fund the renovations. The purchase contract has a short closing deadline, and we were able to fund the loan in just 1 week. The interest rate was 11.50%, and we charged 2% origination points. The loan term was set at 12 months. This purchase bridge loan was funded in July 2023.

Karpe Real Estate Center, a direct private lender for Central California real estate, funded a $1,200,000 1st lien position refinance bridge loan for a 12-unit multifamily property in Cedar Glen, CA. The property value was estimated at $1,840,000 so our loan-to-value was 65%. We paid off a previous loan balance of $1,100,000. The Borrower had a loan maturing and needed a quick bridge loan while the property was put on the market for sale. The units were completely renovated and fully leased at the time of loan closing. The 0.29-acre property sits near a popular vacation spot in Lake Arrowhead. The Borrowers plan on selling the property and exchanging it for their next project. The Borrower had good credit. The interest rate was 10.50%. The loan term was set at 12 months. This multifamily bridge loan was funded in April 2023.

Stormfield Capital, a technology-enabled direct portfolio lender, funded a $1,500,000 1st lien position acquisition bridge loan in Clarks Summit, a relatively affluent suburb of Scranton, PA. The loan is secured by a 100% occupied, 20-unit multifamily property with a separate retail unit. We funded 100% of the $350,000 renovation budget and 80% of the $1,600,000 purchase price, while the Borrower contributed 20% cash at closing. The after-repair value was $2,600,000 so our loan-to-after-repair value was 58%. The loan enabled the Sponsor to conduct rolling renovations of the units as they turn. The Sponsor is an active local real estate investor, having flipped 40+ properties in the past 5 years, and owning a current portfolio of over 50 single-family rental homes in Northeast Pennsylvania. The subject property is approximately 23,000 square feet. The Borrower plans to continue leasing the property and eventually refinance as an exit strategy. The interest rate was 11%. We charged a 1% origination point and the broker earned a $15,000 commission. The loan term was set at 12 months. This CRE bridge loan was funded in April 2023.

Diversified Mortgage Company, one of California’s oldest and lowest-priced private lenders, funded a $1,020,000 bridge loan in 1st lien position for the acquisition of 2 properties in the Kings Beach neighborhood of Lake Tahoe, CA – an 11-unit multifamily property and a 16-unit RV park. The purchase price was $1,800,000. We funded 55% of the purchase, and the Borrower contributed 30% cash at closing. We arranged for another lender to be in 2nd position. The 2nd lender funded $240,000 resulting in a 70% combined loan-to-value. There was negative cash flow after debt service, but the property had potential. It was less than 50% occupied and the seller had no operating statements. The interest rate was fixed at 7.75% with amortized payments. We charged 2% origination points. The Borrower had good credit. The loan term was set at 48 months. This multifamily bridge loan was funded in January 2023.