Deal Details
Private Loan Type
Refinance
Approx. Funding Date
12/13/2019
Property Type
Property City
Gladstone
Property State
MO
Loan Term (months)
18
Lien Type
1st Mortgage
Payment Type
Interest Only
Loan-to-Value
60%
Occupancy at Closing
Partially Occupied
Exit Strategy
Refinance
Interest Rate
9%
Origination Points
1.75%
Deal Summary
Archway Fund, a direct CRE private mortgage lender, provided a $3,400,000 1st lien position non-recourse bridge loan secured by a strip retail center in Gladstone, MO. The Sponsor’s loan had matured, and they required more funds in order to make improvements and complete the lease-up of the property. At the time of funding, the occupancy rate was 55%. Archway was able to get comfortable with the vacancies by building an $800,000 interest reserve into the loan and a renovation budget for future tenant improvements as leases are signed. The exit strategy is to refinance once the property is stabilized. The loan term was set at 18 months with extension options. The interest rate was fixed at 9%. We charged an origination fee of 1.75 points. The LTV was 60%. As with almost all of our deals, the Sponsor did not have to personally guarantee the loan. This bridge loan was funded in December 2019.