Refinance Bridge Loan for Flagged Hotel in New London, Connecticut

Avatar Financial Group, a direct private money lending firm, funded a $2,800,000 1st lien position bridge loan secured by a hotel in New London, CT. While the Sponsor was one week from closing on the purchase of a separate hotel, they were notified that they had exceeded the SBA limit for a single Borrower. Avatar was asked to quickly refinance the SBA loan on the Sponsors’ hotel which had lots of equity that could be used to execute the new hotel transaction. Avatar was able to complete the refinance of the property thus freeing up the capacity to take on new debt and allowing the acquisition to continue. The loan-to-value was 65%. Our interest rate was 9.99%. The loan term was 6 months with one 6-month extension. This CRE bridge loan was funded in May 2019.