Funded Bridge Loans for Multifamily Properties
Bridge Loan for Multifamily Development Site in Los Angeles, California
$1,000,000
Secured Capital Lending, a direct private lender, funded a $1,000,000 1st lien bridge loan for the acquisition of a multifamily development site in Van Nuys, Los Angeles County, CA. We funded 35% of the $2,900,000 purchase price, while the Borrower contributed 65% cash at closing. The Borrower is a seasoned developer and owner of a construction company for more than 25 years. He located a unique opportunity to acquire a 13,700-square-foot lot that is slated to have a 33-unit multifamily building. The land came with approved plans and ready-to-use (RTI) permits. The seller needed a fast close, so the Borrower decided to secure the lot with a quick bridge loan. This allowed him to prepare his team for the construction phase without rushing to find the right construction lender. We were able to quickly underwrite and get comfortable with the deal. Since the lot was fully entitled, this further reduced the investment’s risk level. This is a repeat Borrower of ours, and we were already comfortable with his experience and track record. No appraisal was needed since the property is local to us. We consulted with several elite commercial brokers in the area, including Marcus and Millichap, to get second opinions on value. It was a win-win for all parties involved. The Borrower had excellent credit. They plan to refinance into a construction loan. The interest rate was 11.5%, and the loan term was set at 12 months. This CRE bridge loan was funded in May 2024.
Purchase Bridge Loan for Multifamily Property in Los Angeles, California
$1,575,000
SDC Capital, a direct private lender based in Burbank, funded a $1,575,000 1st lien position bridge loan for the acquisition of an 8-unit multifamily property in Los Angeles, CA. We funded 70% of the $2,250,000 purchase price, while the Borrower contributed 30% cash at closing. The property had significant deferred maintenance and several vacant units at the time of closing. The Borrower plans to renovate the property with their own funds. We did not include a hold-back of rehab money for this loan. Once the renovations are completed and vacant units are leased, the Borrower will seek a conventional multifamily loan to pay off our loan. It is approximately 7,400 square feet set in a 7,600-square-foot lot. The interest rate was 9.99% and we charged a 1% origination point. The loan term was set at 12 months. This multifamily bridge loan was funded in March 2024.
Refinance Bridge Loan for Stabilized Multifamily Property in Atlanta, Georgia
$5,604,000
Lima One Capital, a lender for multifamily and residential real estate investors, funded a $5,604,000 1st lien position bridge loan secured by a stabilized 56-unit multifamily property in Atlanta, GA. The property value was estimated at $9,340,000 so our loan-to-value was 60%. The investor had a bridge loan from another lender while they worked on leasing up the vacant units, but needed more time than the existing bridge allowed to be ready for agency takeout. Lima One provided a bridge-to-bridge financing solution with no as-is DSCR requirement to allow the investor to optimize the vacancy rate and gain seasoning to prepare for long-term agency financing. We provided a bridge-to-bridge interest-only loan at a fixed rate to give the investor additional time to qualify for permanent financing at a lower interest rate. The loan term was set at 24 months. This multifamily refinance bridge loan was funded in February 2024.
Bridge Loan for 32-Unit Multifamily Property in The Bronx, New York
$1,450,000
Bridge Loan for Multifamily Property Acquisition in Sacramento, California
$4,950,000
Rubicon Mortgage Fund, a direct private money lender, funded a $4,950,000 1st lien position bridge loan for the acquisition of a 60-unit multifamily property in Sacramento, CA. The purchase price was $6,750,000. The Borrower contributed some cash, but the majority of their equity came from the 1031 exchange of another investment property – a 25,000 square foot office building in Sacramento which had an estimated value of $2,000,000. Conventional financing was not an option because the multifamily property had some affordable housing restrictions, and the rents were below market due to the condition of the units. The Borrower plans to upgrade most of the units over a 12 to 18-month period. Once the rents have been increased and the property is stabilized, they plan to refinance into a permanent multifamily loan. The loan term was set at 24 months. This multifamily bridge loan was funded in February 2024.
Stormfield Capital, a technology-enabled direct portfolio lender, funded a $1,450,000 1st lien position bridge loan secured by a 32-unit multifamily property in the Kingsbridge neighborhood of the Bronx, NY. The property value was estimated at $3,000,000 so our loan-to-value was 48%. We paid off a previous loan balance of $200,000. The loan was used to recapitalize this fully-stabilized property owned by the same family for over 30 years. Stormfield’s loan was made at an attractive attachment point of $55 per square foot. Kingsbridge is a vibrant and diverse neighborhood located in the northwest part of the Bronx in New York City. The subject property was in good condition and is approximately 30,000 square feet. The Borrower had good credit. They plan to continue leasing the property and will eventually refinance with a conventional loan. The interest rate was 11.50%. We charged a 1% origination point and the broker earned a $14,500 commission. The loan term was set at 12 months. This CRE refinance bridge loan was funded in February 2024.