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Deal Details
Private Loan Type
Commercial Property Value Add
Approx. Funding Date
08/30/2019
Property Type
Property City
Reno
Property State
NV
Loan Term (months)
24
Lien Type
1st Mortgage
Payment Type
Interest Only
Loan-to-Value
60%
Number of Units
18
Exit Strategy
Refinance
Interest Rate
8%
Origination Points
2%
Deal Summary
Archway Fund, a direct private mortgage lender, provided a $1,750,000 1st lien position non-recourse bridge loan for the acquisition of an 18-unit apartment building in Reno, NV. The Sponsor was doing a 1031 exchange and needed a quick bridge loan. The subject property had been mismanaged, and rents hadn’t been increased in over 15 years. Archway was able to fund quickly without an appraisal or a DSCR requirement. We held back 100% of the rehab budget of $550,000 which enabled the Sponsor to buy out tenants and renovate the units. They plan to increase rent and eventually refinance with a perm loan. The interest rate on this bridge loan was fixed at 8% Interest. We charged an origination fee of 2 points. The LTV was 60%, and the loan term was 24 months. As with almost all of our deals, the Sponsor did not have to personally guarantee the loan. This bridge loan was funded in August 2019.
Funded By
Archway Capital
National Non-Recourse Bridge Loan & Equity Provider