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Completed Bridge Loan Transactions in Chicago
Bridge Loan for 12-Unit Multifamily Property in Chicago Ridge, Illinois
Sherpa Capital Group, a direct private lending firm based in Chicago, funded a $1,250,000 equity cash out bridge loan secured by a 12-unit multifamily property in Chicago Ridge, Illinois. The Borrower, a local commercial real estate developer that Sherpa Capital has done business with in the past, needed quick capital for materials and repairs on another commercial property. The subject property’s value is approximately $2,500,000 so the loan-to-value was 50%. We paid off the previous loan balance of $200,000 and put a new 1st mortgage on the 12-unit property, plus we got a 2nd lien on a 300,000-square-foot industrial building that the Borrower owns. Sherpa Capital was able to provide the financing just 10 days after the term sheet was signed. This CRE bridge loan was funded in October 2021.
Bridge Loan for Retail Property Purchase & Conversion in Chicago, Illinois
Gelt Financial, a direct CRE private lender, funded a $472,550 bridge loan for the purchase of a vacant retail property in Chicago which used to be an Aldi Supermarket. The Borrower planned to acquire the property and convert it into a daycare center. They own two other daycares in the area, and this location is part of their expansion plan. The original financing plan was to get an SBA loan, but it was taking too long and there was a risk of losing the deal. We approved the loan within an hour and were ready to close right away. We did not require an appraisal. The Borrower had plans to spend $100,000 on the conversion, so there was some value-add. Our loan will be approximately 65% of the post-conversion value. The Borrower plans to refinance with an SBA loan after the renovation is complete and the property is stabilized. This CRE bridge loan was funded in April 2021.
Bridge Loan for Chicago Commercial Property Investor
$1.3MM bridge loan secured by 4 commercial properties in the Albany Park neighborhood of Chicago, IL. The Borrower needed to cash out some equity to pay for legal and operating expenses. We paid off the previous loan balance of and provided the need cash in a timely manner. The collateral for this loan consists of 4 adjoining retail properties totaling approximately 27,000 square feet. The properties collectively have an occupancy rate of over 90%, and most of the tenants are “mom & pop” stores. The Borrower has operated a business in one of the spaces for over 25 years. Based on a local Chicago commercial real estate broker’s opinion of value and a past appraisal, we estimate the value to be approximately $2,900,000 so the LTV (loan-to-value) for our bridge loan is 45%. Owemanco has provided private money financing to the Borrower several years ago and we had a good experience. That bridge loan was refinanced with a local bank, and this is the same expected exit strategy for the current loan. The Borrower plans to refinance with a conventional lender to pay off our 1st trust deed bridge loan within the 2-year term. This loan was funded in June 2016.
$1.8MM bridge loan for the purchase of a 40,000 square foot bank-owned office building in suburban Chicago. This transaction, completed in July 2014, is a great example of an undervalued REO asset with significant potential that was being mismanaged due to bank ownership. This bridge loan allowed the Borrower to quickly close the transaction and preserve $100,000 in equity that would have otherwise been at risk. The loan also provides for a capital improvement reserve to allow for renovations on vacant space as new leases are signed. The Borrower put down 20% cash, and the LTC (loan-to-cost) for this senior bridge loan is 80%.