Bridge Loan for Vacant Retail Property in Omaha, Nebraska

Archway Fund, a direct CRE private mortgage lender, provided a $2,200,000 1st lien position non-recourse bridge loan for the purchase of a vacant retail property in Omaha, NE. The Sponsor is an owner-user gym operator who plans to move their existing gym to this new location. The property size is 87,000 square feet and includes a few smaller retail units. We provided funds for the acquisition and also held back $1,200,000 to be used for the build-out of the new gym. The loan-to-value on this deal is 60%. The Sponsor required a quick close and a flexible lender to get this deal done, and Archway closed in just 7 days. The existing strategy is to refinance with a conventional loan once the gym is stabilized and the other units on the property are leased. The loan term is 12 months with extension options. The interest rate was fixed at  9.95%. We charged an origination fee of 2 points. This bridge loan was funded in December 2019.