Commercial Property Value Add08/30/2019
Archway Fund, a direct private mortgage lender, provided a $1,750,000 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 rents and eventually refinance with a perm loan. The interest rate on this bridge loan was 8% Interest Only fixed. 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.