1031 Exchange Bridge Loan for Portfolio of 3 NNN Commercial Properties in Tennessee, Georgia and Massachusetts

Funded by Gelt Financial, LLC

3,550,000

Deal Details

Private Loan Type

Purchase

Approx. Funding Date

10/28/2022

Property Type
Auto Repair
Industrial
Retail
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 Highlights

Bankable deal but borrower needed a quick close for 1031 exchange deadline
Provided a 24-month loan term but expect to paid off fairly soon by bank financing
Collateral spread across 3 states
Closed in less than 2 weeks

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

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