Pennsylvania Bridge Lenders for Commercial Real Estate

Stormfield Capital, a technology-enabled direct portfolio lender, funded a $1,500,000 1st lien position acquisition bridge loan in Clarks Summit, a relatively affluent suburb of Scranton, PA. The loan is secured by a 100% occupied, 20-unit multifamily property with a separate retail unit. We funded 100% of the $350,000 renovation budget and 80% of the $1,600,000 purchase price, while the Borrower contributed 20% cash at closing. The after-repair value was $2,600,000 so our loan-to-after-repair value was 58%. The loan enabled the Sponsor to conduct rolling renovations of the units as they turn. The Sponsor is an active local real estate investor, having flipped 40+ properties in the past 5 years, and owning a current portfolio of over 50 single-family rental homes in Northeast Pennsylvania. The subject property is approximately 23,000 square feet. The Borrower plans to continue leasing the property and eventually refinance as an exit strategy. The interest rate was 11%. We charged a 1% origination point and the broker earned a $15,000 commission. The loan term was set at 12 months. This CRE bridge loan was funded in April 2023.