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Deal Details
Private Loan Type
Purchase
Approx. Funding Date
01/31/2020
Property Type
Property City
Carlsbad
Property State
CA
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Loan-to-Purchase Price
72%
Borrower's Contribution to Purchase
28%
Source of Borrower's Contribution
1031 Exchange
Occupancy at Closing
All Units Occupied
Borrower's Plan
Long-Term Rental
Exit Strategy
Refinance
Interest Rate
8.75%
Origination Points
2%
Deal Summary
Archway Fund, a direct CRE private lender, provided a $4,300,000 1st lien position non-recourse bridge loan for the purchase of an office building in Carlsbad, San Diego County, CA. The Sponsor was using 1031 exchange proceeds and needed a quick closing for the acquisition. Archway funded 72% of the purchase price, and the 1031 contribution was 28%. The property was 100% occupied but had short-term leases. Archway was able to get comfortable with this by building a $140,000 interest reserve into the loan. The exit strategy will be to refinance once the property is stabilized with longer-term leases. The loan term was set at 12 months. The interest rate was fixed at 8.75%. We charged an origination fee of 2 points. This bridge loan was funded in January 2020.
Funded By
Archway Capital
National Non-Recourse Bridge Loan & Equity Provider