SF Bay Area Bridge Lenders for Commercial Real Estate
A list of bridge loan lenders for commercial real estate throughout the SF Bay Area, including North Bay South Bay, East Bay, Peninsula 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.
In August 2020, Rubicon Mortgage Fund provided a bridge loan for the acquisition of a gas station property in Concord, Contra Costa County, CA. The borrower was referred to Rubicon by a residential loan agent as well as an online marketing service, both of whom have done business with our team in the past. The borrower purchased the business portion of the 1,176 square foot Gas Station and Convenience Store in 2018 for $400,000 and was leasing the underlying land. He was given the option to purchase the fee simple estate for $1,100,000 when the lease came due. To avoid the hassle and time constraints which are expected with a conventional lender, the borrower opted to engage a private money lender to close as quickly as possible. Rubicon secured a 1st Deed of Trust and UCC-1 filing on the station and c-store, loaning the borrower $800,000 which was just under 50% loan-to-value. Rubicon’s quick loan process, including in-house underwriting without an appraisal being required, allowed the Buyer to close quickly and seamlessly. Rubicon has provided bridge financing for many gas stations in the Bay Area over the past 10 years, and we are one of the few private lenders in California that will consider gas stations as collateral.
Refinance Bridge Loan for San Francisco Creative Office Building
Private Mortgage Fund, LLC funded a $4,080,000 bridge loan for the refinance of an owner-user creative office building in the South of Market (SOMA) District of San Francisco. The Borrowers' previous loan was coming due, and they need to buy some additional time before securing long-term financing. They needed to close fast, and we were able to get the loan funded in just 1 week. The loan term was 12 months, and there won't be a pre-payment penalty. The loan-to-value was approximately 60%. We did our own in-house valuation, and no formal appraisal was required. The rate was 7.75% Interest Only. The subject property consists of approx. 10,000 square feet, fully renovated with award-winning architecture. It is located very close to the Bart Station. This private bridge loan was funded in August 2019.
Cash Out Bridge Loan for Lafayette CA Retail Property with No Appraisal
In September 2017, SDC Capital funded a cash-out refinance of a family-owned multi-tenant retail center in Lafayette, CA. The owners needed the funds to complete renovations of the property that were long overdue. The broker who brought us this deal initially requested a cash-out loan secured in 2nd position, but that plan changed once it was determined that subordinate financing required approval from the 1st lien lender – approval the lender was unwilling to give after nearly one month of deliberation. Now short on time and shorter on funds to pay their contractor, the borrowers approached us regarding the refinance of their 1st lien loan. To avoid any further delays by requiring the borrower to get an indemnity package approved by the title company to obtain mechanics lien coverage on the lender’s title policy, SDC Capital mitigated the loss of priority risk through our due diligence and we closed the loan quickly without an appraisal. The broker was happy as his clients’ financing need was solved and he received a higher commission as the loan amount increased from the original request. The interest rate was 8.99%, LTV was 65%, and the loan term was 12 months.
Refinance Bridge Loan for Richmond Industrial Property
In July 2016, Rubicon Mortgage Fund funded a $1.2MM bridge loan secured by a light industrial condo building in Richmond, Contra Costa County, CA. The Borrower needed to cash out equity on the property to use for other investments. We paid off the previous mortgage and provided the cash needed within two weeks. Using our in-house valuation, we determined the value to be approximately $2,180,000 so the LTV (loan-to-value) for our bridge loan was 55%. The subject property consists of 4 separate condo units totaling 20,600 square feet of light industrial space. It is well featured with heavy power service, floor drains, dock loading and offices. It is centrally located between the Bay counties of Alameda, Contra Costa and Marin County. The property is tenant-occupied and generating enough income to service the loan. The Borrower plans to eventually refinance with long-term financing and pay off our 1st trust deed bridge loan within the 2-year loan term.
Equity Bridge Loan for East Bay Area Industrial Property
In March 2016, Rubicon Mortgage Fund closed a $1.8MM bridge loan secured by an industrial property in Livermore, Alameda County. The Borrower is an online security company that occupies the subject property – 3 commercial condominiums. They needed to cash out equity to use for some operating capital as they gear up for a potential sale. For additional collateral to get the desired cash out needed, we cross-collateralized the homes of the two owners of the business, both located in Livermore. The combined LTV (loan-to-value) with all three properties is 60%. The Borrower found the terms of Rubicon’s bridge loan to be much more competitive than venture capitalists for the money they invested in their business. The Borrower plans to sell the property before the end of the 2-year loan term.
Private Money Bridge Loan for East Bay Commercial Property
In February 2015, Rubicon Mortgage Fund funded a $570,000 bridge loan secured by a mixed-use retail / industrial property in El Sobrante, Contra Costa County. The Borrower’s previous loan had reached maturity and needed to be refinanced. We also cross-collateralized with an office building in Richmond just for additional collateral. The lien on the office building is a second mortgage. The Borrower intends to sell the industrial property to pay off the 1st and 2nd trust deed bridge loan. The combined loan-to-value was 55% and the loan term was one year.
In January 2015, Rubicon Mortgage Fund funded a $1,200,000 private money bridge loan for the acquisition of a gas station in Berkeley, just north of Oakland. The purchase price was $2,050,000 and the Borrower brought in over $800,000 cash to the deal. He is an experienced local real estate developer with a great track record. The station was vacant at the time of purchase but will soon be leased and operating again. The Borrower may redevelop the property in the future and a construction loan will likely pay off the loan. The LTC (loan-to-cost) on this 1st trust deed bridge loan is 60%. Although the loan term is 1 year, Rubicon typically offers extension options to our clients.