Sacramento Bridge Lenders for Commercial Real Estate
A list of bridge loan lenders for commercial real estate in Sacramento County, including Citrus Heights, Elk Grove, Folsom, Rancho Cordova 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.
Avatar Financial Group, a direct private money lending firm, funded a $1,500,000 bridge loan to refinance a grocery store retail property in Rancho Murieta, a small community East of Sacramento. The Sponsor's mortgage broker approached Avatar with a cash-out funding request after receiving notice that their conventional loan had been placed on permanent hold due to the financial markets environment caused by the Pandemic. Avatar was able to provide the liquidity needed in less than a week. Our interest rate was 9% for a 12-month term. The estimated value of the property was $10,000,000 which resulted in a very conservative 15% loan-to-value for our loan. The deal was brought to us by a mortgage broker to whom we paid a commission of $15,000. This CRE bridge loan was funded in April 2020.
Bridge Loan for Sacramento CA Industrial Property Acquisition
SDC Capital provided a $4MM bridge loan for the acquisition of an industrial property in Sacramento, California. The purchase price was around $5.3MM, so our loan is 75% loan-to-value. The building is in the "Green Zone" and will be used for a cannabis business. The borrower plans to use their own funds to do some renovations and add some fixtures in order to provide a turn-key cannabis grow facility. Once they have obtained the appropriate licenses from the City, they will be leasing the building and will not operate the cannabis facility. SDC will only lend to a landlord for a cannabis property, not an operator. The borrower agreed to partially pay down the loan subsequent to a near-term capital raise and sell the property during the loan term. We did our own valuation in-house and did not require an appraisal. Our interest rate on this deal was significantly higher than what we normally charge, due to the high LTV. We charged 11% and 1.5 points. If the LTV was 65% or less, the rate would have been much lower. We made an exception with the higher LTV on this deal because one of the principals of our firm had a prior relationship with the borrower, and we are confident in their ability to perform. This bridge loan was funded in November 2018.
Refinance Bridge Loan for Sacramento Industrial Property
In March 2016, Rubicon Mortgage Fund financed a $600,000 bridge loan secured by an industrial building in the Richards Boulevard neighborhood of Sacramento, close to Downtown. The Borrower is a Sacramento commercial real estate developer who built this building and 4 others just like it in the same industrial business park back in 2007. The building size is approximately 8,800 square feet and is tenant-occupied. The previous bank loan was coming due and needed to be refinanced. Rubicon paid off the previous lender and quickly provided a new private mortgage. We estimated the value of the property at around $1,000,000 so the LTV (loan-to-value) for this bridge loan was 60%. The Borrower plans to sell the property before the end of the 12-month loan term.