California Bridge Lenders for Commercial Real Estate

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.

Archway Fund, a direct private mortgage lender based in LA, provided a $2,626,000 non-recourse bridge loan for the purchase of a 20,165 square foot industrial property in North Hollywood, California. The Sponsor was a repeat client needing private financing in order to meet a purchase deadline and secure the property for lower than the listing price. Archway was able to meet their deadline which allowed the Sponsor to close quickly. The property was 90% leased, with multiple tenants. They plan to do some light value-add work and get the property up to 100% occupancy. Their exit strategy is to refinance with permanent debt within the 6-month loan term. The interest rate was 7.75% Interest Only fixed. We charged an origination fee of 1 point. The LTV was 60%. As with almost all of our deals, the Sponsor did not have to personally guarantee the loan. This bridge loan was funded in September 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.

Archway Fund provides a $6.8M refinance bridge loan secured by a mixed-use property located just outside the Smokey Hollow district of El Segundo, CA. The Sponsors are foreign nationals and were in a technical default with their previous lender. They required a quick close to avoid default interest. Archway was able to provide a 10-day close and get comfortable with a majority of the leases being month-to-month while building in an interest reserve to cover shortfalls. The loan-to-value was 65%. The majority of the subject property is a co-working office space which the owner operates. The property also has some smaller retail spaces which are leased to various tenants, including a liquor store, restaurant, salon and laundromat. The Sponsor plans to extend and season the leases, increase the NOI and refinance with a conventional lender once they are back on track. This commercial real estate bridge loan was funded in May 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.

In June 2016, Rubicon Mortgage Fund funded a $1.2MM bridge loan for the acquisition of commercial land in Salinas, Monterey County, CA. The Borrower owns the adjacent property and wanted to acquire this property to expand his agricultural business. We used the adjacent property as collateral to fund the purchase, and the resulting LTV (loan-to-value) was 51%. The Borrower did not have to bring any cash to the deal. His adjacent property has more than enough equity. We closed the transaction in just 10 days. The Borrower plans to eventually refinance with a conventional lender in order to pay off our senior bridge loan within the 2-year term.

$1,200,000 1st trust deed private money loan secured by an industrial property in San Fernando, a city in Northwest Los Angeles County. The subject property is a single-user, tenant-occupied light industrial building. The gross building size is 14,800 square feet on a 0.53 acre lot. The estimated value is $2,500,000 so this private money loan is only 48% LTV (loan-to-value). The Borrower’s previous 1st mortgage was close to maturity and they needed to quickly refinance with a short-term private money loan. We paid off the previous loan and provided a new 1st mortgage with competitive terms, and closed in a timely manner. The term for our new loan is 2 years. The Borrower plans to eventually refinance out of our 1st position mortgage with a long-term SBA loan.

In August 2016, Rubicon Mortgage Fund funded a $1.5MM refinance bridge loan secured by two commercial properties in Northern California. The Borrower was in contract to purchase an investment property and needed to cash out equity on their two commercial properties in order to fund that acquisition. The first property securing the loan is a 13-unit multifamily property in Yuba City, Sutter County, approximately 40 miles north of Sacramento. The property was owned free-and-clear of any liens or mortgages. For additional security on the loan, we cross-collateralized with a 45-unit mobile home park in Auburn, Placer County, which is situated 30 miles northeast of Sacramento. Both properties are income-producing and in good condition. The loan-to-value is 60% for our 1st trust deed private mortgage. We closed the transaction in just 10 days. The Borrower plans to eventually refinance with a conventional lender in order to pay off our bridge loan within the 1-year term.