New York Bridge Lenders for Commercial Real Estate

Gelt Financial, a direct CRE lender, funded a $250,000 first-lien position cash-out refinance loan secured by a small 3-unit retail center in North Tonawanda, Niagara County, NY. The property value was estimated at $700,000 so our loan-to-value (LTV) was 36%. It was owned free-and-clear without any mortgages. The Borrower is an experienced real estate investor who needed quick capital for a new investment. The retail center had 3 tenants with long-term leases in place. The spaces were being used for a restaurant, a barber shop, and an office. The property was in excellent condition and is approximately 9,500 square feet. The Borrower had excellent credit. Their exit strategy is to refinance into a long-term loan within 2 years. The interest rate was 12.50% floating, and we charged 3% origination points. The loan term was set at 24 months. This hard money loan was funded in July 2024.

Sherpa Capital Group LLC, a private CRE lender, funded a $2,200,000 first-lien position bridge loan secured by a mixed-use property in Downtown Buffalo, NY. The property’s value was estimated at $4,750,000, resulting in a loan-to-value ratio of 55%. The loan was used to pay off a previous balance of $2,700,000. The property is a 55,000-square-foot building with office spaces and apartments. The Borrower, an experienced real estate developer specializing in multi-family and workforce housing, required a quick closing as their existing loan with a regional bank was maturing and the bank was no longer extending loans. Conventional refinancing options for mixed-use properties in tertiary markets were limited. Sherpa Capital recognized the potential of the property and swiftly completed due diligence, conducted a site visit, and provided financing within two weeks. The Borrower had excellent credit. They plan to convert most office units into apartments, leverage historic tax credits, and eventually refinance with a local lender as an exit strategy. The interest rate was 15%. We charged 3% origination points, and the broker earned a $33,000 commission. The loan term was set at 12 months. This CRE bridge loan was funded in July 2024.

Stormfield Capital recently funded a $6,750,000 1st lien position recapitalization bridge loan in the Bedford Stuyvesant neighborhood of Brooklyn, NY. The loan was secured by a fully-stabilized mixed-use building with 11 retail and 46 residential units. The property value was estimated to be $12,000,000 and our loan-to-value was 65%. We paid off a previous loan balance of $6,500,000. The subject property was situated a block from the Nostrand Ave subway station, which is a direct line into Manhattan that offers local and express trains. The station underwent renovations in January 2020 and currently serves about 17,500 riders each weekday. The building is approximately 46,000 square feet. All units were occupied at closing. The broker earned a $56,250 commission. The loan term was set at 12 months. This CRE bridge loan was funded in January 2023.