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Deal Details
Private Loan Type
Purchase
Approx. Funding Date
10/28/2022
Property Type
Property City
Nashville
Property State
TN
Loan Term (months)
24
Lien Type
1st Mortgage
Payment Type
Interest Only
Loan-to-Purchase Price
50%
Borrower's Contribution to Purchase
50%
Source of Borrower's Contribution
1031 Exchange
Location Type
Urban
Property Condition
Excellent
Occupancy at Closing
Tenant-Occupied
Borrower's Plan
Continue Rental
Exit Strategy
Conventional Loan
Interest Rate
11%
Deal Summary
Gelt Financial, a direct CRE lender, funded a $3.55MM bridge loan for the purchase of a NNN property portfolio. It was a 1031 exchange transaction that included three properties:
- Fast food restaurant in Murfreesboro, Tennessee
- Automotive oil change shop in Atlanta, Georgia
- Warehouse in Northampton, Massachusetts
The Borrower was up against a tight timeframe with the 1031 exchange, and banks were not able to provide a quick closing or surety of execution. We were able to close the deal in just two weeks, allowing the borrower to complete their 1031 transaction before the deadline. The purchase price was over $7.1MM. The Borrower contributed 50% cash from the sale of another property, and Gelt funded the remainder which is a conservative 50% LTV. We charged 11% interest and set the loan term at 24 months, which provides more than enough time to find permanent financing which will pay off our 1st mortgage. This CRE bridge loan was funded in October 2022.
Funded By
Gelt Financial, LLC
Creative Private Financing for Commercial Real Estate since 1989