Vineland, NJ

$19,000,000

Hotel, Office, Retail

Refinance

09/27/2019
Transaction by
Avatar Financial Group
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.