Cincinnati Bridge Lenders for Commercial Real Estate
Are you seeking short-term financing secured by commercial real estate in the Cincinnati metro area? On this page you'll find a list of select CRE Bridge Lenders that can finance a Cincinnati property purchase, 1031 exchange, refinance, or equity cash out in 1st lien position. We have a separate page for lenders that can fund a rehab / value-add project. The maximum loan-to-value for most CRE bridge loans is 70%, and some lenders can go up to 75% for retail and industrial properties. The max LTV is typically much lower for office, hotels, and specialty property types.Searching...
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Funded CRE Bridge Loans in Cincinnati
Bridge Loan for 86-Unit Motel to Multifamily Conversion in Cincinnati, Ohio
$1,500,000
Real Property Investment Partners, a direct private lender, funded a $1,500,000 1st and 2nd lien position bridge loan for the acquisition of an 86-unit motel in Cincinnati, OH. We funded 65% of the $2,053,613 purchase price and 100% of the $200,000 renovation budget, while the Borrower contributed 35% cash to the purchase at closing. The after-repair value was $4,000,000 so our loan-to-ARV was 50%. Allowing for a 10% vacancy, monthly NOI was estimated to be $23,130 after debt service and all expenses, once stabilized and refinanced. The property would still have cash flow with as much as a 40% vacancy. A conservative valuation at an 8-cap rate was $3,469,620.
The Borrower intends to convert the subject property into studios. They plan to lease the property upon completion of the light rehab and eventually refinance as an exit strategy. The scope of work was relatively light– adding kitchenettes into each unit, completing flooring on the stairs, and some minor repairs in and around the property. The Borrower had excellent credit and was a highly experienced real estate investor with an extensive rental portfolio. They will be putting close to $1M towards the property and requested $1.3M dollars in funding. The interest rate was 12%. We charged 2% origination points. The property is approximately 157,861 square feet set in a 3.62-acre lot and was vacant at closing. The loan term was set at 12 months. This CRE bridge loan was funded in October 2022.
We liked this deal for a number of reasons:
- The area was experiencing tremendous development that yielded robust rent growth.
- As interest rates rise, the affordability of homeownership has gotten worse, and people have therefore been turning to rentals yielding strong rent growth across the board.
- The Borrower is one of our most experienced clients that has an impeccable track record. He has already executed 12 deals with us and has delivered incredible results.
- The foreclosure acquisition is at an extremely low basis at under $24,000 a door.
- The Borrower was putting in a tremendous amount of capital himself which shows his determination to perform and his willingness to put a sizable amount of capital of his own at risk.
- We would be lending at just 56.43% Loan-to-Cost and at 37.47% LTV. This is assuming a very conservative approach at a 10% vacancy and an 8-Cap valuation. The Borrower is confident that given the lack of supply rentals in the market, he will be able to have a smaller vacancy as well as a better valuation.