Los Angeles Bridge Lenders for Commercial Real Estate
A list of bridge loan lenders for commercial real estate in Los Angeles County - Long Beach, West LA, San Fernando Valley, DTLA, Beverly Hills, Santa Monica, Glendale and other areas. The lenders in our directory offer bridge loans for a variety of CRE financing, including: acquisition, refinance, cash out, redevelopment, repositioning, recapitalization, 1031 exchange, discounted payoff (DPO), note purchase and other deal types.
RRA Capital, a direct private lending firm, funded a $6,138,500 non-recourse bridge loan secured by two commercial lots in Los Angeles, CA. The loan will provide funding to refinance seller carryback financing as well as follow-on proceeds to fund leasing costs. The term is 24-months with one, 6-month extension option followed by one, 4-month option. The loan was structured to also include a sizable interest reserve to cover operating costs prior to rent commencement.
Pad ‘A’ is a well-located 36,374 square foot parcel and is the site for a proposed 4,088 square foot 7-Eleven gas station and convenience store. In August, 7-Eleven signed a 20-year ground lease with multiple extension options that will extend through January 2057. The construction of the proposed building will be performed by the future tenant.
Pad ‘B’ is an equally well-located 15,445 square foot parcel and is the site for a proposed 900 square foot quick-serve restaurant with drive-thru. The sponsor has an existing LOI for a 20-year ground lease with a multinational coffee chain to develop the site. If this tenant does not enter into a formal lease, the sponsor will market the site to other quick-serve restaurant users, and the loan includes a rate reduction provision upon lease execution of the Pad ‘B’ tenant. This bridge loan was funded in November 2020.
Foreclosure Bailout Bridge Loan for Los Angeles Retail Property
In October 2020, Newport Commercial Capital provided a bridge loan in the amount of $4,300,000 secured by retail property in Los Angeles. The property had two mortgages and was in default with one of the previous lenders. A new partner joined the ownership group and used his own cash to pay off the 2nd mortgage. He then turned to NCC to refinance the 1st mortgage and save the property from foreclosure. We ordered an appraisal, and the value came it at around $8,775,000. So our loan-to-value was only 49%. The property consists of 8 retail units. 6 were occupied and the other 2 were undergoing tenant improvements but had leases in place. The property also consists of an adjacent vacant lot, and the owners plan to build a 40,000 square foot storage facility. Some of the proceeds from our bridge loan were to be used for the soft costs, and we may end up providing the construction loan next year.
BridgeCore Capital, a direct private lender in Beverly Hills, provided a refinance bridge loan to cash out equity on a 50-unit apartment complex in Los Angeles. The Borrower needed the funds to invest in a business and also reposition the subject property with capital improvements and unit renovations. The property is in a great location, but the rents were below market. Given the need for certainty of execution and superior bridge pricing, the borrower sought BridgeCore’s unique Pay-Rate solution of a 4.99% current pay-rate on a 7.99% total interest rate during the loan term, with 3.00% accruing without compounding interest. Since BridgeCore underwrote on current value rather than the property’s previous below market purchase price, the borrower is now able to season the property with BridgeCore’s market level loan, allowing it to be repositioned for refinancing after stabilization at the maturity of BridgeCore’s 18-month term. The loan-to-value was 74%. This bridge loan was funded in January 2020.
Acquisition Bridge Loan for Hollywood Vacant Mixed-Use Property
Archway Fund recently financed a $2.67M bridge loan for the acquisition of a vacant mixed-use commercial property in Hollywood, CA. The Sponsor required private money to afford them the time and flexibility to pursue multiple take out options, including renovation and lease up, or spec development. The property is on a corner lot, at a busy intersection, and it has a lot of potential. The loan-to-value was 69%. The Sponsor put down 31% of the purchase price in cash at closing. The interest rate on this bridge loan is 8.5%, and the loan term is 24 months. We were able to provide an interest reserve as well as renovation financing on a very quick closing timeline, with no recourse. As with almost all of our deals, the Sponsor did not have to personally guarantee the loan. This bridge loan was funded in June 2019.
Bridge Loan for Huntington Park CA Multifamily Property Acquisition
SDC Capital provided 1st trust deed financing of $806,250 (75% LTV) for the purchase of a 7-unit apartment building in Huntington Park, a city just five miles south of Downtown Los Angeles. This was a deal where the borrower had intimate knowledge of the submarket and was already invested heavily in the area. The plan was to renovate the units and hold the property indefinitely for cash flow. The borrower’s experience and extensive knowledge of the submarket gave us added confidence in our ability to close the deal quickly with no appraisal required. As a result, he closed two weeks early and received a $25,000 price reduction from the seller. The exit plan is to refinance with conventional financing during the 12-month term once rents are stabilized and renovations are complete. This deal was funded in January 2019.
Bridge Loan for Three Multifamily Properties in Beverly Hills
Archway Fund closed a $9.39M non-recourse bridge loan for the purchase of three adjacent multi-family properties in Beverly Hills, Los Angeles County. The sponsor needed a recapitilization loan to capture substantial tax benefits along with renovation funds including $750,000 held for rehab costs. The interest rate is 8% fixed for a 24-month term. The exit strategy is to refinance with a traditional lender once renovations are complete and the property is stabilized. This bridge loan was funded in December 2018.
Non-Recourse Bridge Loan for Los Angeles County Industrial Property
Archway Fund closed a $6.1M non-recourse acquisition bridge loan secured by a 40,000 square foot industrial building located in Santa Fe Springs, Southeast Los Angeles County, CA. The sponsor plans to recapitalize a portion of the equity partner’s acquisition costs and eventually refinance with a long-term SBA loan. The property is 100% occupied. The interest rate was 9.5% fixed for a term of 24 months. Loan-to-value was 66%, and the sponsor did not have to personally guaranty the loan. This bridge loan was funded in October 2018.
Refinance Bridge Loan for Culver City Industrial Property
In March 2018, Archway Fund financed a $6.8MM refinance, cash-out bridge loan secured by a 27,000 square foot research and development building located in Culver City, CA just off the 405 freeway near the Westfield Culver City mall. The borrower required a non-bureaucratic lender with non-recourse and significant cash-out, therefore the need for private money. During our loan term, the Borrower plans to re-purpose the building into a creative office space. Exit is to refinance with a traditional lender once the creative office conversion is completed and fully leased. The interest rate was 7.99% and the term is 24 months.
8-Unit Multifamily Purchase Bridge Loan in Long Beach CA
SDC Capital funded a $910,000 bridge loan for the purchase of an 8-unit multifamily property in Long Beach, California. The borrower intends to complete minor unit renovations and refinance our loan within a year with conventional financing. Our pricing on this bridge loan was 7.99% interest only and 1 point origination fee. This loan was funded in February 2017.
Bridge Loan for 5-Unit Multifamily Property in San Pedro
$200K Private money bridge loan secured by a 5-unit multifamily property in San Pedro, close to the Port of Los Angeles. The Borrower owned the property free-and-clear and needed to cash out some equity to use for his business. The appraised value was $562K so the loan-to-value was only 36%. The property is fully occupied and debt services itself with the rental income. The interest rate for this 1st trust deed bridge loan was 9% (interest only) and the term is 5 years. It was funded in January 2015.