California Bridge Lenders for Commercial Real Estate

Avatar Financial Group, a direct CRE private lending firm, funded a $3.6MM bridge loan secured by a mixed-use commercial property in Pasadena, California. The 25,257 square foot mixed-use building comprised of office and retail. A family matriarch owned the subject property since 1978 and passed away in 2015. The property is vested in a Trust, which states that the real estate can be liquidated five years after death. Avatar’s loan provided a partial interest reserve, funds to update the property and set aside a TILC reserve that will be used to stabilize the property and maximize the value in preparation for a sale. We estimated the value to be around $8.1MM, so the loan-to-value for our senior mortgage was only 44%. The interest rate was 8.75%, and the loan term is 2 years. This CRE bridge loan was funded in August 2021

In January 2021, BridgeCore Capital closed a $5,100,000 bridge loan secured by a 52-unit multifamily property in Stockton, California. The borrower recently renovated the entire apartment complex and required a refinance the previous senior and multiple junior liens which had matured and required a swift pay-off, as well as a new second trust deed loan to satisfy outstanding debt. BridgeCore’s pay-rate bridge product provided the borrower with a 5.50% pay-rate during the entire loan term, with the remaining interest accruing to loan pay-off without compounding interest. The pay-rate structure significantly reduced loan costs and afforded the borrower with additional cash flow to invest in other value-add opportunities. BridgeCore also assisted in sourcing a new second trust deed lender to relieve the financial burden of the high-cost, subordinate debt that was previously in place. The loan term was set at 12 months and included one six-month extension option to provide the borrower the necessary time, either to execute an exit strategy through a sale, or to refinance through a conventional lender for long-term financing if a sale is not consummated.

Avatar Financial Group, a direct private mortgage lending firm, funded a $4,325,000 bridge loan secured by an office building in Santa Monica, California. The Sponsor recently finished a complete renovation of the subject property. Their previous financing was due in in full, and due to the financial market turmoil caused by COVID-19, the conventional lender notified our borrower that they could no longer finance the transaction. Avatar was able to step in and quickly refinance the ballooning loan which provided the borrower with an extra 2 years to secure conventional debt. Our interest rate was 8.74% for a 24-month term. The estimated value of the property was $7,450,000 which resulted in a 58% loan-to-value. The deal was brought to us by a mortgage broker to whom we paid a commission of $40,000. This CRE bridge loan was funded in April 2020.

SDC Capital, a direct private lender based in Burbank, funded a $770,000 bridge loan for the purchase of a 6-unit multifamily property in Norwalk, Los Angeles County. Other lenders had halted all lending activity or couldn’t accommodate the borrower’s needs. Fortunately, we had adjusted our lending programs to account for the new, uncertain economy and this deal was a perfect fit. The LTP (loan-to-purchase) was just 55%. The borrower brought 45% cash to the closing table. We were able to work with the borrower and combine efforts to safely inspect the property and underwrite the value, with no appraisal and no hassle. As a result, the deal closed without an issues or delays. Our interest rate was 7.99% plus an origination fee of 1 point. This bridge loan was funded in April 2020.

Avatar Financial Group, a direct private money lending firm, funded a $9M bridge loan to refinance an owner-occupied office building in Irwindale, California. Due to a family tragedy our sponsor was in need of assistance to refinance the existing debt that was in default and due in full. Avatar was able to refinance the debt in the time period requested and provide the term needed for the sponsor to increase cash flow and eventually exit with conventional financing. The sponsor’s company occupies 100% of the property which is situated in the San Gabriel Valley of Los Angeles County. Our interest rate was 8.0% and loan-to-value was 63%. The deal was brought to us by a mortgage broker to whom we paid a commission of $90,000. This CRE bridge loan was funded in November 2019.

Avatar Financial Group, a direct private money lending firm, funded a $6,500,000 bridge loan to refinance an independent boutique hotel in Downtown Glendale, California. The Borrower needed to cash out equity out the property in order to purchase another hotel property. Avatar was able to refinance the property and provide the borrower with the cash out needed in time to capitalize on the new opportunity. The hotel was originally established in 1924. The Borrower has owned and operated the subject property since 1999, and it has been continually upgraded and has a 4 star rating from many travel websites. In addition to the 40 hotel rooms, the property has 7,500 square feet of first floor retail space. Our interest rate was 7.5% for a 12-month term and loan-to-value of 61%. The deal was brought to us by a mortgage broker to whom we paid a commission of $65,000. This CRE bridge loan was funded in June 2019.

In March 2019, First Bridge Lending funded a $5,000,000 bridge loan secured by a large industrial property in Hollister, San Benito County, California. The borrower is an experienced investor who has been a full-time landlord for more than 25 years, and they were seeking an equity cash out loan for business expenses and capital improvements. They purchased the property in 2008 for $12.5M, then leased it for 10 years. The tenant vacated at the end of the lease term. The property was owned free-and-clear of any mortgages, with the exception of a cross-collateral property that was to be refinanced. First Bridge Lending provided an initial funding of $3,000,000 with a first draw of $1,000,000 and subsequent draws of $250,000 each to provide refinance shortfall funds as needed. We did our own in-house valuation and did not require an appraisal. We estimated the value to be around $16,000,000 which out our loan at a very conservative 31% LTV. The loan term is 12 months. The borrower’s exit strategy was to complete the improvements, lease to a new tenant and refinance with permanent financing.