Deal Details
Private Loan Type
Purchase
Approx. Funding Date
12/30/2021
Property Type
Property City
Eugene
Property State
OR
Loan Term (months)
6
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$11,000,000
Loan-to-Purchase Price
70%
Borrower's Contribution to Purchase
30%
Source of Borrower's Contribution
1031 Exchange
Location Type
Urban
Property Condition
Excellent
Occupancy at Closing
Tenant-Occupied
Borrower's Plan
Long-Term Rental
Exit Strategy
Refinance
Borrower Credit Rating
Excellent
Deal Summary
First Bridge Lending, a direct private mortgage lender, provided a $7,700,000 bridge loan to secure the acquisition of a student housing property in Eugene, OR. We funded 70% of the $11,000,000 purchase price in 1st lien position, and the Borrower contributed 30% at closing using funds from a 1031 Exchange. They were in contract to purchase this stabilized student housing property and were in the process of getting an agency loan which takes months to close. The seller offered a discount if the deal could close before year-end, but that timeframe was just 2 weeks. To capture that discount, the Borrower decided to use our bridge loan to close the deal fast. We funded it in 1 week. Since the agency loan was already approved and far along in the process, they expect to refinance within a few months. Our loan term was set at 6 months with no prepayment penalty. The subject property was in excellent condition and tenant-occupied at closing. This CRE bridge loan was funded in December 2021.