Deal Details
Private Loan Type
Refinance
Approx. Funding Date
01/31/2020
Property Type
Property City
Los Angeles
Property State
CA
Loan Term (months)
18
Lien Type
1st Mortgage
Payment Type
Interest Only
Loan-to-Value
74%
Exit Strategy
Refinance
Interest Rate
7.99%
Deal Summary
BridgeCore Capital, a direct private lender in Beverly Hills, provided a $10,900,000 1st lien position refinance bridge loan to cash out equity on a 50-unit apartment complex in Los Angeles, CA. The Borrower needed the funds to invest in a business and also reposition the subject property with capital improvements and unit renovations. The property is in a great location, but the rents were below market. Given the need for certainty of execution and superior bridge pricing, the Borrower sought BridgeCore’s unique Pay-Rate solution of a 4.99% current pay-rate on a 7.99% total interest rate during the loan term, with 3.00% accruing without compounding interest. Since BridgeCore underwrote on the current value rather than the property’s previous below-market purchase price, the Borrower is now able to season the property with BridgeCore’s market-level loan, allowing it to be repositioned for refinancing after stabilization at the maturity of BridgeCore’s 18-month term. The loan-to-value was 74%. This bridge loan was funded in January 2020.