Bridge Loan for 2 Mixed-Use Properties in Greenwich Village, Manhattan

BridgeCore Capital closed a $16.5MM bridge loan for the acquisition of two contiguous mixed-use buildings in the Greenwich Village neighborhood of Manhattan, New York City. The Borrower required a non-recourse private loan to purchase the properties that contain 72 multifamily units and ground floor retail. The apartments are 53% vacant, and the retail space is 100% vacant at purchase. BridgeCore’s 24-month term, including two six-month extension options, is providing the Borrower the necessary time to make renovations, including a re-balancing between market-rate and rent-stabilized units, and to position the property for an exit with conventional financing once stabilized. Our competitively structured loan terms allowed the Borrower to quickly execute the purchase of a transitional asset when conventional financing has not been readily available during the current COVID-19 economic environment. Loan terms include three months of prepaid interest; an interest rate of 7.65% for the first 12 months and a floating rate at Prime + 4.40%, with a floor of 7.65%, for the second 12 months; and collection of monthly escrows from the Borrower for interest, taxes, and insurance. BridgeCore employed its decades of experience and innovative strategies to solve the Borrower’s array of unique challenges, securing highly competitive loan terms and closing within a tight time frame on a “sign and close” purchase transaction. This bridge loan was funded in July 2020.