SF Bay Area Bridge Lenders for Commercial Real Estate

Rubicon Mortgage Fund, a direct private money lender, funded a $875,000 1st lien position bridge loan secured by an industrial building in Oakland, California. The property value was estimated at $1,350,000 so our loan-to-value was 65%. The Borrower’s previous mortgage was approaching loan maturity, and their interest rate was set to increase, plus they would have to pay additional fees. Rubicon was able to pay off the previous lender and offer better pricing. As an asset-based lender, Rubicon can often fund transactions like this one fairly quickly, enabling clients to refinance on time and save money. The subject property was in good condition and vacant at closing. It is approximately 5,000 square feet and located just off the I-880 freeway. The Borrower plans to lease up the property and eventually refinance as an exit strategy. This refinance bridge loan was funded in July 2023.

Security Financial Services, a direct private lending firm based in San Francisco, provided a $2,500,000 bridge loan, with a 10-day close, to secure the acquisition of an 11-unit multifamily property in Mountain View, CA. The purchase price was just over $3,570,000 so the loan-to-value for our 1st position private mortgage was 70%. The Borrower contributed 30% cash at closing. The subject property was in good condition and partially occupied at closing. The improvements were constructed in 1961 and are situated on a single parcel of land. The Borrower intends to remodel units, and within the 6-month loan term, they will lease the available units at the market. The Borrower plans to refinance into permanent financing. This multifamily private money loan was funded in February 2023.

Security Financial Services, a direct private lending firm, provided a $1,275,000 bridge loan to secure the acquisition of an owner-user industrial property in the Bayview neighborhood of San Francisco. We funded 60% of the purchase price, and the Borrower contributed 40% cash at closing. The subject property was in good condition and will be owner-occupied. The improvements were constructed in 1946 and are situated on one parcel. The Borrower plans to refinance into permanent financing within the 18-month loan term. The monthly payments were amortized. This industrial property bridge loan was funded in October 2022.

Diversified Mortgage Company, one of California’s oldest and lowest-priced private lenders, funded a $1,099,000 bridge loan for the purchase of a single-unit industrial property in Richmond, California. The estimated purchase price was $1,592,750. DMC funded 69% of the purchase in 1st lien position, and the Borrower contributed 31% cash. The Borrower had been leasing the property previously and worked out a deal with the previous owner to purchase it. They operated a food processing business. The interest rate was 7% and the loan term was set at 24 months. The Borrower plans to continue occupying the property and will eventually refinance with a conventional loan within 2 years. This industrial property bridge loan was funded in October 2022.

Security Financial Services, a direct private lending firm based in San Francisco, provided a $1,300,000 bridge loan to secure the acquisition of a 5-unit multifamily property in San Leandro, just south of Oakland in the East Bay Area. The loan-to-value for our 1st position private mortgage was 65%. The subject property was in good condition and partially occupied at closing. The improvements were constructed in 1953 and are situated on two parcels. The Borrower intends to remodel units, and upon completion of the 12-month loan term, the owners will lease the vacant units at the market. The Borrower plans to refinance into permanent financing. This multifamily property bridge loan was funded in August 2022.

Private Mortgage Fund LLC, a direct California private lender, funded a $4,080,000 1st lien position bridge loan for the refinance of an owner-user creative office building in the South of Market (SOMA) District of San Francisco, CA. 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.

SDC Capital, a direct private lender based in Burbank, funded an $720,000 cash-out bridge loan secured by 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.