New Jersey Bridge Lenders for Commercial Real Estate
A list of bridge loan lenders for commercial real estate in New Jersey. 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.
BridgeInvest, a direct CRE private lender, closed a $15MM loan for the refinance of a 25.6-acre industrial land assemblage in Woodbridge, New Jersey. At closing, the sponsor was in the process of receiving entitlements to develop an over 350,000 square foot logistics center on the property. The loan proceeds were used to refinance the existing debt which had a near term maturity, allowing the sponsor additional time to move forward with their development plan. BridgeInvest was able to provide a bespoke bifurcated funding structure with two advances to refinance two separate tranches of debt as required by the sponsor. We underwrote the complicated risks associated with obtaining necessary environmental and wetland permitting. Despite the development plan being only partially approved at closing, BridgeInvest was able to lend against the underlying value of the project. We underwrote and closed the transaction in 30 days to meet the sponsor’s needs with a pending maturity. This bridge loan was funded in June 2021.
Commonwealth Capital, a direct private lending firm, funded a $500,000 Bridge Loan for a real estate investor based in Nassau County, NY. The funds were used to acquire a hotel property in Atlantic City, NJ. For additional collateral, the borrower pledged two single family residences in Nassau County which had a considerable amount of equity. With cross-collateralizing the additional properties, the combined loan-to-value was just 39%, resulting in lower risk for us. Commonwealth was able to complete the transaction quickly. The loan term is 1 year with interest-only payments. The borrower plans to refinance within 1 year to pay off our loan. This commercial property loan was funded in October 2020.
In September 2020, Commonwealth Capital funded a $1,300,000 cash out refinance bridge loan for a landscaping business in New Jersey. The borrower needed the loan proceeds to payoff IRS debt, real estate taxes, and complete environmental work. The loan was secured by the borrowers landscaping business and 2 single family residences. The cross collateralization of other real estate made the transaction possible to take care of all the borrower's needs. The business' commercial property is located in Middlesex County, NJ. The two residential properties are located in Edison. Our loan included reserve accounts for both interest payments and the environmental work on the commercial property. The loan term is 2 years. The combined loan-to-value across all 3 properties was 55%.
Bridge Loan for New Jersey Commercial Property Portfolio
Avatar Financial Group, a direct private money lending firm, funded a $19,000,000 bridge loan to refinance a portfolio of 7 commercial properties in New Jersey. The porfolio consisted of three hotels, three restaurants and an office building. The sponsor's previous loan was set to mature within 30 days. Conventional refinancing had been unsuccessful because two flagged hotels were in need of separate multi-million dollar property improvement plans (PIPs). These PIPs had not yet been approved by either of the hotel's franchisors nor was a contractor bid in place. In addition, the sponsor wanted maximum flexibility with regard to deed releases in the event part of the portfolio was sold. Avatar provided a term sheet within 24 hours of the initial request and was ultimately selected over competing private lenders for our team’s proven ability to close complex loan transactions quickly and our dedication to closing this deal within the 30-day window available before the sponsor’s existing loan matured. With many moving parts, a tight timeline, and a number of obstacles that required creative solutions, Avatar was able to close the loan within the time frame needed and provide the sponsor with the capital required to fund property improvement plans for the two hotels and meet all business needs. Our interest rate was 8.5% for a 36-month term and loan-to-value of 58%. The deal was brought to us by a mortgage broker to whom we paid a commission of $190,000. This CRE bridge loan was funded in September 2019.
Equity Cash Out Bridge Loan for New Jersey Medical Office Condominiums
Private money bridge loan secured by 8 medical office condominium units in Jersey City, NJ. The Borrower operates a surgical medical facility at the property and needed to cash out equity to use for working capital and paying down some debt. The total space is approximately 11,000 square feet and the estimated value is over $2.6M, so the loan-to-value is under 50%. The Borrower pledged 2 residential properties as additional collateral. All properties were owned free-and-clear of any liens. We provided the Borrower with a six-month interest reserve facility as part of the loan amount. After 6 months the debt will be serviced by cash flow from the medical business. The Borrower plans to refinance with an institutional lender to pay off this 1st trust deed bridge loan within one year. It was funded in April 2015.
Bridge Loan for Newark New Jersey Multifamily Property Acquisition
In November 2014, Owemanco funded a private money bridge loan for the purchase of a 16-unit apartment building in the Weequahic neighborhood of Newark, New Jersey. The purchase price was $1,280,000. The Borrower put down only $30K in cash but cross-collateralized with equity in another investment property to make the loan-to-coast 51%. The cross-collateralized property is a Class-C 16,000 square foot multifamily property near the acquired 16-unit property. The Borrower plans to improve the property and hold for a long term. A refinance will pay off this 1st trust deed bridge loan within 1 year.