Texas Bridge Lenders for Commercial Real Estate

Sherpa Capital, a private lender, funded a $1,650,000 1st lien position bridge loan for the acquisition of a  medical office building situated in the main medical district of El Paso, TX. We funded 82.50% of the $2,000,000 purchase price while the Borrower contributed 17.50% cash at closing. Our Client was a local radiologist aiming to expand their medical practice and transition to a larger facility. They are high income earners with a clear exit strategy, so we felt comfortable going much higher on the leverage than we normally do, and we charged a healthy rate/fee to compensate for our additional risk. We also felt the purchase price was around $600,000 below market value. The purchase contract gave a short window of time to close. They required a quick closing before year-end to capitalize on favorable tax planning (accelerated depreciation). Conventional financing was unable to meet the tight deadline, but Sherpa provided financing within just 2 weeks. The Borrower’s exit strategy is to refinance with a conventional lender within a few months. They already have a term sheet in hand. The subject property was in good condition and vacant at closing. The loan term was set at 6 months. This CRE bridge loan was funded in December 2023.

Ontario Wealth Management Corporation, a direct private mortgage lender, funded a $3,000,00 1st lien position bridge loan secured by a commercial plaza located in Tomball, TX. The Borrower needed to cash out equity on the property to use for the acquisition of inventory for their business. The property is a 23,000-square-foot newly built commercial retail plaza 35 miles north of Downtown Houston. Although the property had a good amount of equity, the Borrower pledged an additional property to maximize the loan amount. The property that we cross-collateralized is a 1,200-square-foot residential condominium unit in Midtown Manhattan, NY. This CRE equity cash out loan was funded in April 2019.