Refinance Bridge Loan for Commercial Land in San Bernardino, California

In September 2020, Newport Commercial Capital provided a CRE bridge loan in the amount of $2,895,000 secured by vacant commercial land in San Bernardino, CA. The Borrower was seeking a cash-out refinance loan to pay off the existing debt and utilize the additional proceeds to complete several milestones in preparation for the vertical construction phase. The lot, consisting of 18 acres, was recently entitled to a 420-unit senior care facility. The Borrower is an investment group that initially came to us in February. Due to a disagreement among the partners, the deal fell apart. They came back to us in September, and we were able to close quickly. We ordered an appraisal, and the value came at just under $10,000,000. So our loan-to-value was only 30%. The loan term was set at 12 months, we expected to be paid back when the Borrower secures a ground-up construction loan. Very few lenders are willing to consider land deals of this size in the Inland Empire. We have funded land loans through the pandemic and continue to be bullish on infill urban land deals with low loan-to-values.